The value of this liability today = $28,229,985.11
<u>Explanation:</u>
Given data: annual payments = $1650000, number of years given = 25 years, interest rate given = 3.47 percent
Now, we have to find out the liability that is owed today
<u>The following formula is used to calcute the liability aamount which is outstanding as on today</u>
Value of the laibility today = ( 1 + r) multiply PMT multiply ( 1 minus ( 1 by (1 plus r power n))) by r
Now, we have to put the values in the above given formula
1.0347 multiply 1650000 multiply ( 1 minus ( 1 by (1.0347 power 25))) by 0.0347
Thus, solving the above equation we get, = $28,229,985.11
