P6-28 (similar to)Question Help

(Related to Checkpoint6.2)(Present value of annuitypayments) The statelottery's million-dollar payout provides for $1.1 million to be paid in 25 installments of $44,000 per payment. The first $44,000 payment is madeimmediately, and the 24 remaining $44,000 payments occur at the end of each of the next 24 years. If 6 percent is the discountrate, what is the present value of this stream of cashflows? If 12 percent is the discountrate, what is the present value of the cashflows?

a.If 6 percent is the discountrate, the present value of the annuity due is $ _________. (Round to the nearestcent.)