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$$75,000$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$5\%($EAR$)?$ Note:Assumethat the sabbatical annual salary is paid in one lump sum every

$7$ years.What is the equivalent discount rateWhat is the present value of the amount she will earn on

sabbatical