Present Value of an Annuity

On January 1, 2016, 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 eight years. The payments will be made on December 31 of each year, beginning on December 31, 2016. If the current interest rate is 5%, determine the present value of your winnings. Use Table 2. Round to the nearest whole dollar

Present Value of Ordinary Annuity of $1 per Period 0.89286 1.69005 0.90909 0.94787 0.92593 0.93897 0.95694 1.87267 1.80802 2.62432 2.57710 3.38721 2.32163 2.69793 3.50515 4.27028 2.67301 3.46511 2.97447 3.03735 3.60478 3.23972 3.10245 3.79079 4.38998 4.35526 3.99755 5.07569 5.78637 4.99553 5.68297 4.28830 4.63886 5.38929 5.03295 5.89270 6.59589 6.20979 5.75902 5.32825 6.95220 5.42624 7.02358 6.49506 5.93770 7.498677.13896 7.94269 8.35765 5.66029 8.52892 8.61852 7.16073 6.49236 6.42355 9.68285 8.59974 7:36669 7.60608 8.22424 7.78615 9.29498 9.58965 10.03758 6.46238 10.73955 10.37966 6.26506 6.37286 6.46742 6.55037 8.31256 7.82371 11.65230 12.16567 1265930 10.10590 10.47726 11.70719 12.15999 12.59329 13.00794 10.86461 11.24607 11.27407 7.24967 7.36578 9.37189 10.05909 10.33560 10.59401 12.08532 10.73471 8.51356 11.46992 13.59033 9.29224 8.64869 8.07507 7.56200 10.83553 10.01680 11.06124 10.20074 11.76408 11.28498 21 13.40472 13.16300 8.4 82 0031 8 49565 365 8.7 8 13.45909 13.57661 12.75379 11.51389 2.85401 11.58693 2.94767 11.65457 8.13535 8.15656 8.17550 14.23023 14.49825 15.04630 15.45583 15.76186 16.00255 16.37419 7.15909 15.07507 15.23703 15.39055 7.05985 7.07005 17.02286 17.24676 9.60857 9.64416 7.10504 8.24378 8.28252 8.30450 14.14553 13.33171 11.92461 10.75736 18.40158 20.72004 16.54773 7.13266 9.91481 13.80075 12.23348 19.76201 18.25593