Present Value of an Annuity

On January 1, 2016, you win $1,560,000 in the state lottery.

The $1,560,000 prize will be paid in equal installments of $130,000 over 12 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 Perioc 0.94787 0.93897 0.89286 1.87267 185941 1.80802 2.62432 3.38721 4.10020 2.53129 3.23972 2.36115 2.97447 2.57710 2.40183 3.16987 3.10245 2.91371 4.45182 3.99271 5.15787 435526 3.99755 5.68297 5.38929 6.73274 6.59589 7.26879 4.63886 5.32825 5.65022 6.65610 6.51523 5.75902 6.14457 7.16073 6.81369 5.91765 5.66029 8.35765 8.74547 9.10791 7.90378 8.22424 6.74987 6.96187 10.22289 7.36669 10.03758 11.23402 10.83777 8.85137 7.37916 6.26506 6.37288 10.47726 9.76322 9.1216 8.02155 8.20141 10.43247 11.01851 11.28498 11.77014 12.19788 12.39237 11.24607 7.24967 7.36578 9.37189 12.08532 12.46221 6.55037 6.62313 20 10.59401 12.82115 13.16300 13.48857 6.68696 6.74294 21 13.40472 14.14777 14.82821 15.14661 12.27524 10.83553 10.01680 11.06124 10.20074 11.27219 10.37106 11.46933 10.52876 11.65358 10.67478 12.01158 7.16961 13.15170 14.09394 8.42174 7.84314 6.87293 1.2577810.19828 9.30657854780789566 9.36961 9.47901 14.37519 14.64303 15.98277 13.00317 11.82578 0.90998 11.98671 10.93516 12.13711 11.05108 2.27767 11.1541 10.11613 5.14107 15.37245 14.33310 13.59072 12.90749 13.05868 30 14.90420 1746101 1619290 150750714.08404 120063 15.23703 16.04612 15.59281 6.00255 16.37419 12.53181 11.34980 7.03498 14.23023 12.75379 11.51389 12.85401 11.58693 12.94767 11.65457 34 17.24676 13.57661 9.60857 8.15656 14.49825 8.17550 8.24378 8.28252 7.10504 7.12322 7.13268 10.75736 13.33171 11.92461 13.60552 12.10840 13.80075 12.23348 40 19.79277 18.40158 19.15635 17.77407 15.45583 9.00791 15.76186 14.72452 50 19.76201 18.25593