You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate.

An annuity that pays $500 at the end of every six months

An annuity that pays $1,000 at the beginning of each year

An annuity that pays $1,000 at the end of each year

An annuity that pays $500 at the beginning of every six months An ordinary annuity selling at $14,130.15

An ordinary annuity selling at $14,130.15 today promises to make equal payments at the end of each year for the next twelve years (N). If the annuitys appropriate interest rate (I) remains at 8.00% during this time, the annual annuity payment (PMT) will be___________ .

2718.75

2343.75

1875.0

5035.98

You just won the lottery. Congratulations! The jackpot is $85,000,000, paid in twelve equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won____ assuming annual interest rate of 8.00%. (Note: Round intermediate calculations to the nearest whole number.)

53380550.11

145175010.589

134421306.101

57650994.12