On January 1, 2008, you win $40,000,000 in the state lottery. The $40,000,000 prize will be paid

Question:

On January 1, 2008, you win $40,000,000 in the state lottery. The $40,000,000 prize will be paid in equal installments of $2,000,000 over 20 years. The payments will be made on December 31 of each year, beginning on December 31, 2008. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Appendix A.