FSTI Holdings has the following investments in its portfolio, and you have been asked to determine their current market value.

It purchased an annuity from Best Financial 5 years ago. At that time, it paid a lump-sum of $10 million, and in return, FSTI was promised a monthly payment of $100,000, for a total of 15 years from date of purchase. *Note: For this annuity, like most financial products, payments are paid/received at the end of the period ("payment in arrears"). In that case, the "Type" field in the Excel formula has a value of 0, or can be left blank.)

Calculate the current value of the holdings, using the following assumptions.

FSTI was just offered a new 10-year, $50 million annuity from Best Financial, paying $506,225.75 per month. (Hint: Use the terms of this offer to calculate the current market rate.)