Challenging Annuity Review Return to Jack and Diane, the Set for Life Lottery, and the prize of 20 consecutive annual payments of $50,000 beginning one year from today. And, as a bonus, the fifth payment and only the fifth payment includes an extra $25,000 so that the amount received at the end of year 5 is $75,000, Jack looks at Diane and says "can you believe it; us, millionaires." Are they? Calculate the present value of their prize using an interest rate of 4%. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. $623,111 b $642,699 C $654,665 d $662,287 $700,065 Show Submitted Answer Show Correct Answer Check My Answer Challenging Annuity 2 Review Return to Jack and Diane and the Set for Life Lottery. The prize is 20 consecutive annual payments of $50,000 beginning one year from today. And, as a bonus, the fifth payment and only the fifth payment is $75,000 instead of $50,000. Jack and Diane decide to wait until the end of year 20 to spend the money, preferring to reinvest all amounts in an account earning 4%. How much will they have at the end of year 20? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $1,533,928 b $1,679,320 $1,705,271 d $1,718,149 e $1,757,244 W Show Submitted Answer Show Correct Answer Check My