1.) Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $20,000; quarterly payments for 16 years; interest rate 7.4% The payment should be? (Round to the nearest cent as needed)
2.) What lump sum deposited today at 8% compounded quarterly for 5 years will yield the same final amount as deposits of $3000 at the end of each 6-month period for 5 years at 4% compounded semiannually? The value of the lump sum is? (Round to the nearest cent as needed.)
3.)Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rates.
| JackpotAmount | InterestRate | Equal AnnualPayments | Present Value(in dollars) |
| $20,000,000 | 8% | 20 | $ |
| $20,000,000 | 12% | 20 | $ |
| $20,000,000 | 8% | 25 | $ |
| $20,000,000 | 12% | 25 | $ |
(Round to the nearest dollar as needed.)
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