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Present Value of an Annuity On January 1 you win $800,000 in the state lottery. The $800,000 prize will be paid in equal installments of

Present Value of an Annuity

On January 1 you win $800,000 in the state lottery. The $800,000 prize will be paid in equal installments of $80,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 5%, determine the present value of your winnings.

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