Exercise $14$A$-6($Algo$)$ Basic Present Value Concepts $[$LO$14-7]$

The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state$$s newest millionaire. By choosing the six winning numbers on last week$$s state lottery, Mr$.$ Ormsby won the week$$s grand prize totaling $$1\mathrm{.}24$ million. The State Lottery Commission indicated that Mr$.$ Ormsby will receive his prize in $20$ annual installments of $$62,000$ each.

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

$1.$ If Mr$.$ Ormsby can invest money at a $10\%$ rate of return, what is the present value of his winnings? $($Enter your answer in dollars and not in millions of dollars.$)$