Carrie Tune will earn $32,800 for the next 16 years as a payment for a new song she has written.

a. How much are her earnings worth now if the interest rate is 17 percent? (Enter your answer as a whole number rounded to 2 decimal places.)

b. Should she be willing to sell her future earnings now for $208,000?

No

Yes

2. What is the present value of a 9-year annuity of $4,000 per year that has payments made at the beginning of each year? The interest rate is 13 percent. (Enter your answer as a positive number rounded to 2 decimal places. )