Question 1. Mrs. Crawford will receive $8,800 a year for the next 18 years from her trust. If a 13 percent interest rate is applied, what is the current value of the future payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present Value _____ ?

Question 2. Rita Gonzales won the $85 million lottery. She is to receive $2.6 million a year for the next 30 years plus an additional lump sum payment of $7 million after 30 years. The discount rate is 6 percent. What is the current value of her winnings? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present Value _____ ?

Question 3. C. D. Rom has just given an insurance company $32,500. In return, he will receive an annuity of $3,800 for 20 years. At what rate of return must the insurance company invest this $32,500 in order to make the annual payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Rate of Return ________ %