A financial company advertises on television that they will pay you $$75,000$ now in exchange for annual payments of $$12,500$ that you are expected to receive for a legal settlement over the next $12$ years. You estimate the time value of money at $10$ percent.

Calculate the present value of the annual payments. $($Exhibit $1-$A$,$ Exhibit $1-$B$,$ Exhibit $1-$C$,$ Exhibit $1-$D$)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Would you accept this offer?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Calculate the present value of the annual payments.

Note: Round time value factor to $3$ decimal places. Do not round other intermediate calculations. Round final answer to $2$ decimal places.

Present value