On January 1 you win $6,240,000 in the state lottery. The $6,240,000 prize will be paid in equal installments of $520,000 over 12 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 8%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. $ 3,918,760 X Present Value of an Annuity Determine the present value of $310,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year 289,730 Second Year $ 270,760 x Third Year 253,053 Fourth Year $ 236,499 Total present value $ 1,050,033 b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar. $ 1,050,032 On January 1 you win $6,240,000 in the state lottery. The $6,240,000 prize will be paid in equal installments of $520,000 over 12 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 8%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. $ 3,918,760 X Present Value of an Annuity Determine the present value of $310,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year 289,730 Second Year $ 270,760 x Third Year 253,053 Fourth Year $ 236,499 Total present value $ 1,050,033 b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar. $ 1,050,032