me Value of Money ded Assignment Read Chapter 5I Back to Assignment Due Wednesday 02.13.19 at 1 Attempts: Keep the Highest: /3 7. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. 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. O An annuity that pays $1,000 at the end of each year O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $500 at the beginning of every six months O An annuity that pays $500 at the end of every six months an annuity selling at $5,408.75 today that promises to make equal payments at the beginning of each You bought year for the next six years (N). If the annuity's appropriate interest rate (1) remains at 8.00% during this time, then the value of the annual annuity payment (PMT) is You just won the lottery. Congratulations! The jackpot is $60,000,000, paid in six equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really w assuming annual interest rate of 8.00%. 6 20 888 FA FS sc F2 F3 F1