8 . Present value of annuities and annuity payments The present value of an annulty is the sum of the discounted value of all future cash flows: You have the opportunity to invest in several annuites, Which of the following 10-year annuities has the greatest present valoe (PV)? Assume that ail annuities earn the same positive interest rate. An annuty that pars $500 at the beginning of every six months An aninuty that pays $1,000 at the beginning of each year An annuity that pays $1,000 at the end of each year An annuity that pars $500 at the end of every six months An ordinary annuity selling at \$3,806,77 today promises to make equal payments at the end of each year far the next six years ( N ). If the annuity's appropriate interest ratu ( 1 ) remains at 5.00% duning this timegthe annual annuty payment (PMT) will be You just won the lottery. Congratulational The jackpot is $10,000,000, paid in six equal annual payments. The first payment on the lottery gackpot will be made today. In present value terms, you really won -assuming annual interest rate of 5.00%. An annuity that pays $1,000 at the end of each year An annuity that pays $500 at the end of ever An ordinary annuity selling at $3,806.77 today promise appropriate interest rate (t) remains at 5.00% during t) nents at the end of each year for the next six yoars (N). If the annuity's innuity payment (PMT) will be You fust won the lottery. Congratulations! The fackpot i n six equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won -assuming annual interest rate of 5.00%