The Stack has just written and recorded the single greatest rock song ever made. The boys in the band believe that the royalties from this song will pay the band a handsome $$200,000$ every year forever. The record studio is also convinced that the song will be a smash hit and that the royalty estimate is accurate. The record studio wants to pay the band upfront and not make any more payments for the song. What should the record company offer the band if they use a $10\%$ discount rate?

$2,000$

$200,000$

$20,000$

$20,000,000$

$2,000,000$

Question $10(1$ point$)$

The band from the previous problem agrees to the one$-$time payment at a $5\%$ discount rate, but it wants to figure the royalty payments from the beginning of the year, not the end of the year. How much will the band receive with annuity due payments on the royalty checks?