KarenWhitehas just won the Lotto. Her prize pays $41600at the end of each year for4years. In addition, she will receive a one-time payment of $249600at the end of4years. Using the following factors at11%, what amount hasKarenreally won in the Lotto? (round to the nearest dollar)

Type of Cash FlowPeriods

Interest Rate

Factor

PV of $1411%0.6587FV of $1411%1.5181PV ordinary annuity411%3.1024FV ordinary annuity411%4.7097PV annuity due411%3.4437

Options for Answer

$507978

$442071

$293472

$457600