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The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the states newest millionaire. By choosing the six winning numbers on last

The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the states newest millionaire. By choosing the six winning numbers on last weeks state lottery, Mr. Ormsby has won the weeks grand prize totaling $1.02 million. The State Lottery Commission has indicated that Mr. Ormsby will receive his prize in 20 annual installments of $51,000 each.

Use Excel or a financial calculator to solve. Round answers to the nearest dollar.

Required:

1. If Mr. Ormsby can invest money at a 7% rate of return, what is the present value of his winnings?

Present value-

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