You started a small business and decide to buy a piece of equipment that costs $35,000. You will take out a small business loan from the SBA (think of it as a bank) at a 1.5% nominal rate compounded semi-annually for 60 months. Your business can only afford to repay $5,000 each year at the end of the year. However, the SBA has a program to help struggling small business owners like you. You could pay off the rest of the loan in a one time lump sum payment at the end of the loan. How much is the lump sum payment? O 11,951 22,072 18,154 O 8,494 You just won the lottery today. This special lottery will pay you $2,500,000 on your 35th birthday (exactly 15 years from today). However, you really want the money today so you can donate it to SMU. An insurance company will buy your lottery payout in 15 years for a lump sum payment today. If the interest rate is 6% compounded annually, how much is the insurance company paying you today? O 154,444 625,898 834,530 O 1,043,163