You won a lottery that will pay you $50,000 each year for 40 years, with the first payment to start today. The lottery corporation gives you the option of taking the present value of the annual payments as one lump sum amount today instead of receiving the payments over 40 years If the current interest rate on 40 year annuities is 4.2%, how much should the lottery corporation pay you if you decide to take the 'one lump sum amount today" option? $ 25 96 Your phone company charges 2.1% on any overdue monthly balance What effective annual rate (EAR) are you paying on any unpaid balance? ut of 26 You want to buy a new car worth $30,000 but you have no savings The Finance Manager offers a loan to finance your new car with payments of only $750 per month payable for the next 7 years with the first payment starting at the end of the first month What is the nominal annual interest rate you will be paying? out of