Many academic institutions offer a sabbatical policy. Every seventh year a professor is given a year free of teaching and other administrative responsibilities at full pay. For a professor earning $112,500 per year who works for a total of 42 years, what is the present value of the amount she will earn while on sabbatical if the interest rate is 10% (EAR)? Note: Assume that the sabbatical annual salary is paid in one lump sum every 7 years.

1. The equivalent discount rate is -------0.9487171 =94.872(Round to three decimal places.)

2. The present value of the amount she will earn on sabbatical is -------- (Round to the nearest dollar.)

Can you show a step by step solution to solve this by hand? I think the first part is write, but i cannot get the second part.