Present vaiue of an annuity On Janvary 1 , you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over 8 years. The payments will be made on December 31 of each year, beginning on December 31 of this yeac, If the current interest rate is 12%, determine the present value of vour winnings, Use the present value tables in Exhibit 7. Round to the nearest whole dollar. Will the present value of your winnings using an interest rate of 12% be mere than the present value of your winnings using an interest rate of 5% ? Exhibit 7 Present Value of an Annuity of $1 at Compound Interest