eBookPrint Item

Question Content Area

Present Value of an Annuity

On January $1,$ you win $$2,100,000$ in the state lottery. The $$2,100,000$ prize will be paid in equal installments of $$210,000$ over $10$ years. The payments will be made on December $31$ of each year, beginning on December $31.$ If the current interest rate is $7\%,$ determine the present value of your winnings. Use the present value tables in Exhibit $7.$ Round to the nearest whole dollar.

$fill in the blank $1$

$1,311,849$