Present Value of an Annuity On January 1, you win $4,900,000 in the state lottery. The $4,900,000 prize will be paid in equal installments of $490,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 6%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. 3606443 X Feedback Check My Work Review the time value of money concept. Recall that the time value of money concept recognizes that cash received today is worth more than the same amount of cash to be received in the future. Exhibit 7 Present Value of an Annuity of $1 at Compound Interest 5% Periods 1 2 3 4 5 4% 0.96154 1.88609 277509 3.62990 4.45182 5.24214 6.00205 673274 7.43533 8.11090 46% 0.95694 1.87267 2.74096 3.56753 4.38998 5.15787 5.89270 6.59589 726879 7.91272 0.95238 1.35941 2.72325 3.54595 4.32948 5.07569 5.78637 6.46321 7.10782 7.72173 5%% 0.94787 1.84632 2.69793 3.50515 4.27028 4 99553 5.68297 6.33457 6.95220 7.53763 6% 0.94340 1.83339 2.67301 3.46511 4.21236 491732 5.58238 6.20979 6.80169 7.36009 6%% 0.93897 1.82063 264848 342580 4.15568 4.84101 5.48452 6.08875 6,65610 7.18883 7% 0.93458 1.00802 262432 3.38721 4 10020 4.76654 5:38929 5.97130 651523 7.02358 10% 0.90909 1.73554 248685 3.16987 3.79079 4.35526 4,86842 53349 5.75902 6.14457 11% 0.90090 171252 244371 3.10245 3.69590 423054 4.71220 5.14612 5.53705 5.88923 12% 0.89286 1.69005 240183 3.03735 3.60478 4.11141 4.56376 4.96764 5.32825 5.65022 13% 0.88496 1.66810 2.36115 2.97447 3.51723 3.99755 4.42261 4.79677 5.13166 5.42624 6 7 B 9 10