Present Value of an Annuity on Bensary 1 you win $50,000,000 in the state lottery. The $50,000,000 price will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 12%, determine the present value of your winnings. Use the present Value tables in Extibit7. Round to the nearest whole dollar will the present value of your winnings using an interest rate of 12% be more than the present value of your winnings using an interest rate of 5%? Yes Present Value of Ordinary Annuity of S1 per Period Periods 4.0% 5% 4.5% 5.5% 696 6.5% 79 1 2 3 4 5 0.96154 1.88609 2.77509 3.62990 445182 0.95694 1.87267 2.74896 3.58753 4.38998 0.95238 1.85941 2.72325 3.54595 432948 0.94787 1.84632 2.69793 3.50515 4.27028 0.94340 1.83339 2.67301 3.46511 4.21236 0.93897 1.82063 2.64848 3.42580 4.15568 0.93458 1.80802 262432 3.38721 4.10020 6 7 8 9 10 524214 6.00205 6.73274 7.43533 8.11090 5.15787 5.89270 6.59589 726879 7.91272 5.07569 578637 6.46321 7.10782 772173 4.99553 5.68297 6.33457 6.95220 7.53763 491732 558238 6.20979 6.80169 7.36009 4.84101 5.48452 6.08875 6.65610 7.18883 4.76654 5.38929 5.97130 651523 7.02358 830641 11 12 13 14 15 8.76048 9.38507 9.98565 10.56312 11.11839 8.52892 9.11858 9.68285 10:22283 10.73955 8986325 9.39357 9.89864 10.37966 8.09254 8.61852 9.11708 958965 10.03758 7.88687 8.38384 8.85268 9.29498 971225 7.68904 8.15873 8.59974 9.01384 9.40267 7.49867 7.94269 8.35765 8.74547 9.10791 16 17 18 19 20 11.65230 12.16567 1265930 13.13394 13.59033 1123402 11.70719 12.15999 12.59329 13.00794 10.83777 11 27407 11.68959 12.06532 12.46221 10.46216 10.86461 11.24607 11.60765 1195038 10.10590 10.47726 10.82760 11.15812 1146992 9.76776 10.11058 10.43247 10.73471 11.01851 9.44665 9.76322 10.05909 10.33560 10.59401 21 22 23 24 25 1402916 14.45112 14.85684 15.24696 15.62208 13.40472 13.78442 14.14777 14.49548 14.82821 12.82115 13.16300 13.48857 1379864 14.09394 12.27524 1258317 12.87504 13.15170 1341393 1176408 12.04158 1230335 12.55036 1278336 11.28498 11.53520 11.77014 11.99074 12.19788 10.83553 11.06124 11.27219 11.46933 11.65358 26 27 28 29 30 15.98277 1632959 16,66306 16.98371 17.29203 15.14661 15.45130 15.74287 16.02189 1628889 14.37519 14 64303 14.89813 15.14107 15.37245 13.66250 13.89810 14.12142 1433310 14.53375 13.00317 1321053 13.40616 13.59072 13.76483 12.39237 12.57500 1274648 12.90749 13.05868 11.82578 11.98671 12.13711 1227767 12.40904 17.58849 17.87355 18.14765 18.41120 18.66461 16.54439 16,78889 17.02286 1724576 17.46101 15.59281 15.80268 16.00255 16.19290 16.37419 14.72393 14 90420 15.07507 15.23703 1539055 34 13.92909 14.08404 1423023 14.35814 14.49825 13.20063 13:33393 1345909 13.57661 13.68696 12.53181 12.64656 12.75379 12.85401 12.94767 35 40 19.79277 18.40158 17.15909 16.04612 15 04630 14.14553 13.33171 45 2072004 19.15635 17.77407 1654773 1545 13 Present Value of Ordinary Annuity of 51 per Period Periods 9 10% 11% 12% 13% 14% 1 2 3 0.92593 1.78326 2.57710 3.31213 3.99271 0.91743 1.75911 2.53129 3.23972 3.88965 0.90909 1.73554 248685 3.16987 3.79079 0.90090 1.71252 2.44371 3.10245 3.69590 0.89286 1.69005 2.40183 3.03735 3.60478 0.88496 1.66810 236115 2.97447 3.51723 0.87719 1.64666 2.32163 2.91371 3A3308 5 6 7 8 4,62288 5.20637 5.74664 6.24689 6.71000 448592 5.03295 5.53482 5.99525 641766 4.35526 4.86842 5.33493 5.75902 6.14457 4.23054 4.71220 5.14612 5.53705 5.88923 4.11141 456376 4.96764 532825 5.65022 3.99755 4.42261 4.79677 5.13166 5.42624 3.88867 4.28830 4.63886 4.94637 5.21612 10 12 13 14 15 7.13896 7.53608 7.90378 8.22424 8.55948 6.80519 7.16073 748690 7.78615 8.06069 6.49506 Q81369 7.10336 7.36669 7.60608 6.20652 6.49236 6.74987 696187 7.19087 5.93770 6.19437 6.42355 6.62817 6.81086 5.68694 591765 612181 6,30249 6.46238 545273 5.66029 5.84236 6.00207 6.14217 16 17 18 19 20 8.85137 9.12164 9.37189 9.60360 9.81815 831256 854363 8.75563 8.95011 9.12855 7.82371 802155 8.20141 8.36492 8.51356 7.37916 754879 7.70162 7.83929 7.96333 6.97399 7.11963 7.24967 7.36578 7.46944 6.60388 6.72909 6.83991 6.93797 7.02475 6.26506 6.37286 6.46742 6.55037 662313 21 22 23 10.01680 10.20074 10.37106 30.52876 10.67478 9.29224 9.44243 9.58021 9.70661 9.82258 8.64859 8.77154 8.88322 8.98474 9.07704 8.07507 8.17574 8.26643 834814 8.42174 756200 7.64465 7.71843 7.78432 7.84314 7.10155 7.16951 7.22966 7.28288 7.32999 6.68696 6.74294 6.79206 683514 6.87293 25 26 27 28 29 30 10.80996 10.93516 11.05108 11.15841 11.25778 9.92897 10,02658 10.11613 10.19828 10.27365 9.16095 9.23722 9.30657 9.36961 8.48806 854780 8.60162 3165011 8.69379 7.89566 794255 7.98442 8.02181 8.05518 7.37167 740856 744120 7.47009 749565 6.90600 6.93515 6.96066 698304 7.00266 31 32 11.34980 11 43500 1151389 1150693 1165457 1034280 1040524 10.46444 10.51784 10.56682 9.47901 9.52638 9.5694 9/60357 9.64416 8.73315 8.76860 880054 8182952 BAS524 34 35 8.08499 8,11159 8.13535 8.15656 8.17550 7.51828 7.53830 755602 757170 7:58557 7.01988 7.03490 7.04523 7.0985 7.07005 40 11.92461 10.75736 9.77905 395105 3.34378 7.10504 45 12.10540 10.85120 S00791 7660