Please show your work!

Please show your work!

(VII) You are an attorney representing a person who has become permanently disabled as a result of a serious accident. The insurance company agrees to a total award with a present value of $2,000,000 that will be paid out over 25 years. a. If the insurance company applies a discount rate of 7% to the award, what can they afford to pay your client each year? (8 Points) b. You advise your client that the insurance company should apply a 9% discount rate, what can your client now receive each year? (8 points) c. Suppose, the insurance company agrees to 8%, but stipulates that the payout period will increase by 5 years, should your client accept their offer? (4 points) Why or why not