Q17. The state lottery'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 made immediately, and the 24 remaining $44,000 payments occur at the end of each of the next 24 years. If 12 percent is the discountrate, what is the present value of this stream of cash flows? If 24 percent is the discount rate, what is the present value of the cash flows?

Q18. Determine the present value of an annuity due of $7,000 per year for 25 years discounted back to the present at an annual rate of 7 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 12 percent?