Pronghorn Lou has just won the lottery and will receive an annual payment of $100,000 every year for the next 19 years. If the annual interest rate is 11%, what is the present value of the winnings? (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Click here to view the factor table. Present value $ TABLE 1 Future Value of 1 (n) Periods 4% 5% 6% 7% 0 1 2 3 1.00000 1.00000 1.04000 1.05000 1.10250 1.08160 1.12486 1.15763 8% 1.00000 1.00000 1.00000 1.06000 1.08000 1.07000 1.16640 1.12360 1.14490 1.19102 1.22504 1.259711 1.29503 4 1.16986 1.21551 1.26248 1.31080 1.36049 5 1.21665 1.27628 1.33823 1.40255 1.46933 6 1.26532 1.34010 1.41852 1.50073 7 1.31593 1.40710 1.50363 1.60578 8 1.36857 1.71819 9 1.42331 10 1.48024 11 12 13 14 1.73168. 15 1.80094 16 1.87298 17 1.94790 18 19 20 1.47746 1.59385 1.55133 1.68948 1.83846 1.62889 1.79085 1.96715 2.58043 2.33164 1.53945 1.71034 1.89830 2.10485 2.51817 2.25219 1.60103 1.79586 2.01220 2.40985 1.66507 1.88565 2.13293 2.93719 3.34173 3.79750 4.31044 2.57853 2.26090 1.97993 3.64248 3.17217 2.75903 2.07893 2.39656 3.42594 3.97031 2.95216 2.18287 2.54035 3.70002 4.32763 2.69277 3.15882 2.29202 4.71712 3.37993 3.99602 2.40662 2.85434 2.02582 5.14166 4.31570 3.61653 2.10685 2.52695 3.02560 3.86968 5.60441 4.66096 3.20714 2.65330 2.19112 1,41158 1.53862 1.58687 1.67710 1.71382 1.82804 1.99256 1.85093 11% 12% 15% 10% 9% 1.00000 1.00000 1.00000 1.00000 1.00000 1.10000 1.11000 1.12000 1.15000 1.09000 1.25440 1.32250 1.21000 1.23210 1.18810 1.36763 1.40493 1.52088 1.33100 1.74901 1.57352 1.46410 1.51807 1.61051 1.68506 1.76234 2.01136 1.99900 2.15892 2.17189 1.97382 1.87041 1.77156 2.21068 1.94872 2.07616 2.14359 2.30454 2.47596 2.35795 2.31306 2.66002 3.05902 2.77308 2.55803 3.51788 2.36736 2.59374 2.83942 3.10585 4.04556 2.85312 3.15176 3.47855 4.65239 2.81267 3.13843 3.49845 3.89598 5.35025 271962 3.06581 3.45227 3.88328 4.36349 6.15279 4.88711 7.07571 4.17725 4.78459 5.47357 8.13706 5.31089 4.59497 5.89509 5.05447 6.86604 5.55992 6.54355 7.68997 12.37545 6.11591 7.26334 8.61276 14.23177 6.72750 8.06231 16.36654 9.64629 6.13039 9.35762 10.76126 TABLE 2 Future Value of an Annuity of 1 (n) Payments 4% 1 2 5% 1.00000 1.00000 2.04000 2.05000 6% 7% 1.00000 1.0000 2.0700 2.06000 8% 1.00000 2.08000 10 11 12 13 14 15 16 34567890 3.12160 3.15250 3.18360 3.2149 3.24640 10% 9% 1.00000 1.00000 2.09000 2.10000 3.27810 3.31000 4.24646 4.31013 4.37462 4.4399 4.50611 4.57313 4.64100 12% 11% 1.00000 1.00000 2.11000 2.12000 3.34210 3.37440 4.70973 4.77933- 15% 1.00000 2.15000 3.47250 4.99338 5.41632 5.52563 5.63709 5.7507 5.86660 5.98471 6.10510 6.22780 6.35285 6.742381 6.63298 6.80191 6.97532 7.1533 7.33592 7.52334 7.71561 7.89829 8.393841 8.6540 8.92280 8.14201 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 13.48635 14.20679 14.97164 15.7836 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928 15.02581 15.91713 16.86994 17.8885 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24.52271 26.21164 28.02911 34.35192 18.29191 19.59863 21.01507 22.5505 24.21492 26.01919 27.97498 30.09492 32.39260 40.50471 20.02359 21.57856 23.27597 25.1290 27.15211 29.36092 31.77248 34.40536 37.27972 47.58041 21.82453 23.65749 25.67253 27.8881 30.32428 33.00340 35.94973 39.18995 42.75328 55.71747 27 75072 36 97351 40 54470 44 50084 48.88367 65.07509 108102 9.20044 9.48717 7.91286 8.11519 9.78327 10.08901 11.06680 8.75374 3 5 6 7 2.04000 2.05000 3.15250 3.12160 4.24646 4.31013 5.41632 6.63298 7.89829 8.14201 5.52563 6.80191 2.06000 2.0700 3.18360 3.21491 4.37462 4.4399 5.63709 5.7507 6.97532 7.15331 8.39384 8.6540 2.08000 2.09000 2.10000 3.24640 3.27810 3.31000 4.50611 4.57313 4.64100 5.86660 5.98471 6.10510 7.33592 2.11000 2.12000 2.15000 3.34210 3.37440 3.47250 4.70973 4.77933 4.99338 6.22780 6.35285 6.74238 7.52334 7.71561 7.91286 8.11519 8.75374 8.92280 9.20044 9.48717. 8 9 10 11 12 13 14 9.78327 10.08901 11.06680 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 13.48635 14.20679 14.97164 15.7836 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928 15.02581 15.91713 16.86994 17.8885 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24.52271 26.21164 28.02911 34.35192 18.29191 19.59863 21.01507 22.5505 24.21492 26.01919 27.97498 30.09492 32.39260 40.50471 15 20.02359 21.57856 23.27597 25.1290 27.15211 29.36092 31.77248 34.40536 37.27972 47.58041 21.82453 23.65749 25.67253 27.8881 30.32428 33.00340 35.94973 39.18995 42.75328 55.71747 23.69751 25.84037 28.21288 30.8402 33.75023 36.97351 40.54470 44.50084 48.88367 65.07509 25.64541 28.13238 30.90565 33.9990 37.45024 41.30134 45.59917 50.39593 55.74972 75.83636 27.67123 30.53900 33.75999 37.3790 41.44626 46.01846 51.15909 56.93949 63.43968 88.21181 29.77808 33.06595 36.78559 40.9955 45.76196 51.16012 57.27500 64.20283 72.05244 102.44358 16 17 18 19 20 TABLE 3 Present Value of 1 (n) Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 96154 95238 94340 0.93458 92593 91743 90909 90090 89286 86957 92456 90703 89000 0.87344 85734 .84168 82645 81162 .79719 .75614 3 88900 86384 83962 0.81630 79383 .77218 .75132 .73119 71178 65752 4 85480 82270 .79209 0.76290 .73503 70843 .68301 65873 63552 57175 5 82193 .78353 74726 0.71299 68058 64993 62092 59345 56743 49718 6 .79031 74622 70496 0.66634 63017 59627 56447 53464 50663 43233 7 .75992 .71068 .66506 0.62275 58349 54703 51316 48166 45235 37594 8 73069 67684 .62741 0.58201 54027 50187 46651 43393 40388 32690 9 .70259 64461 59190 0.54393 50025 46043 42410 39092 36061 28426 10 67556 61391 55839 0.50835 46319 42241 38554 35218 32197 24719 11 64958 58468 52679 0.47509 42888 38753 35049 31728 28748 21494 12 .62460 .55684 49697 0.44401 39711 35554 31863 28584 25668 18691 13 60057 53032 468841 041496 36770 32618 28966 25751 22917 16253 14 57748 50507 44230 0.38782 34046 29925 26333 23199 20462 14133 15 55526 48102 41727 0.36245 31524 27454 23939 20900 18270 .12289 16 53391 45811 39365 0.33873 17 51337 43630 37136 0.31657 18 49363 41552 35034 0.29586 29189 25187 27027 23107 25025 21199 21763 18829 .16312 10687 .19785 .16963 .14564 09293 .17986 15282 13004 08081 19 47464 39573 33051 0.27615 23171 19449 .16351 137681 11611 07027 20 45639 37689 31180 0.25842 21455 17843 14864 12403 10367 06110 96154 95238 94340 0.93458 92593 90909 91743 90090 89286 86957 2 92456 90703 89000 0.87344 85734 84168 82645 81162 79719 75614 3 88900 .86384 .83962 0.81630 79383 77218 .75132 .73119 71178 .65752 4 85480 82270 .79209 0.76290 .73503 708431 683011 65873 63552 57175 5 82193 .78353 .74726 0.71299 64993 680581 62092 59345 56743 49718 6 .79031 74622 .70496 0.66634 .63017 59627 56447 53464 50663 43233 7 .75992 .71068 .66506 0.62275 58349 54703 51316 48166 45235 37594 8 .73069 67684 62741 0.58201 54027 50187 46651 43393 40388 32690 9 .70259 64461 .59190 0.54393 50025 46043 42410 39092 36061 28426 10 67556 .61391 55839 0.50835 46319 422411 38554 35218 32197 24719 11 64958 58468 52679 0.47509 428881 38753 35049 31728 28748 21494 12 62460 55684 49697 0.44401 39711 35554 31863 285841 25668 .18691 13 60057 53032 46884 0.41496 36770 32618 28966 25751 22917 16253 14 57748 50507 0.38782 44230 34046 29925 26333 23199 20462 14133 15 55526 48102 41727 0.36245 31524 27454 23939 20900 .18270 12289 16 53391 45811. 39365 0.33873 29189 25187 21763 .18829 .16312 10687 17 51337 43630 37136 0.31657 27027 23107 .19785 .16963 14564 09293 18 49363 41552 35034 0.29586 25025 21199 .17986 .15282 13004 08081 19 47464 39573 33051 0.27615 23171 19449 16351 13768 11611 07027 20 45639 37689 31180 0.25842 21455 17843 .14864 12403 10367 06110 TABLE 4 Present Value of an Annuity of 1 (n) Payments 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 96154 95238 2 1.88609 1.85941 3 2.77509 2.72325 4 3.62990 3.54595 S 4.45182 4.32948 6 5.24214 5.07569 7 6.00205 8 6.73274 9 7.43533 10 8.11090 11 8.76048 12 9.38507 13 9.98565 14 10.56312 15 3.38721 4.10020 4.76654 5.78637 5.58238 5.38929 6.46321 6.20979 5.97130 7.10782 6.80169 6.51523 7.72173 7.36009 7.02358 8.30641 7.88687 7.49867 8.86325 8.38384 7.94269 9.39357 8.85268 8.35765 9.898641 9.29498 8.74547 11.11839 10.37966 9.71225 9.10791 94340 0.93458 1.83339 1.80802 2.67301 2.62432 3.46511 90909 4.21236 4.91732 16 17 18 19 20 11.65230 10.83777 10.10590 9.44665 12.16567 11.27407 10.47726 9.76322 12.65930 11.68959 10.82760 10.05909 13.13394 12.08532 11.15812 10.33560 9.60360 8.95012 8.36492 13.59033 12.46221 11.46992 9.12855 8.51356 10.59401 9.81815 .92593 .91743 1.78326 1.75911 1.73554 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 4.62288 4.23054 4.48592 4.35526 4,11141 3.78448 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 8.55948 8.06069. 7.60608 7.19087 6.81086 5.84737 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 7.83929 7.96333 90090 1.71252 89286 1.69005 86957 1.62571 7.36578 6.19823 7.46944 6.25933