Present Value of an Annuity On January 1, you win $960,000 in the state lottery. The $960,000 prize will be paid in equal installments of $120,000 over 8 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.