Present value of an annuity: Transit Insurance Company has made an investment in another company that will guarantee it a cash flow of $37,250 each year for the next five years. If the company uses a discount rate of 15% on its investments what is the present value of this investment? a. $101,766 b. $124,868 c. $251,154 d. $186,250 Effective annual rate: Desire Cosmetics borrowed $152,300 from a bank for three years If the queued rate (APR) is 11 75%, and the compounding is daily, what is the effective annual rate (EAR)? (Round to one decimal place.) a. 11.60% b. 11.75% c. 12.46% d. 14.30%