Present value of annuity payments

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Present value of annuity payments. The state lottery's million-dollar payout provides for $1.4 million to be paid in 20 installments of $70,000 per payment. The first $70,000 payment is made immediately, in the 19 remaining $70,000 payments occur at the end of each of the next 19 years. If 11% is the discount rate, what is the present value of this stream of cash flows? If 22% is the discount rate, what is the present value of the cash flows?

a. If 11% is the discount rate, the present value of the annuity due is $_____.

b. If 22% is the discount rate, the present value of the annuity due is $_____.

Reference no: EM131855815

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