Present Value of an Annuity

On January $1,$ you win $$3,680,000$ in the state lottery. The $$3,680,000$ prize will be paid in equal installments of $$460,000$ over $8$ years. The payments will be made on December $31$ of each year, beginning on December $31.$ If the current interest rate is $7\%,$ determine the present value of your winnings. Use the present value tables in Exhibit $7.$ Round to the nearest whole dollar.

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