The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr. Ormsby won the week's grand prize totaling $1.22 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $61,000 each Click here to view Exhibit 148-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using tables. Required: 1. If Mr. Ormsby can invest money at a 10% rate of return, what is the present value of his winnings? (Enter your answer in dollars and not in millions of dollars.) Present value EXHIBIT 148-1 Present Value of $1;1(1+r) Periods 4% 1 5% 6% 7% 0.962 0.952 0.943 0.935 2 0.925 0.907 0.890 0.873 8% 0.926 0.857 3 0.889 0.864 0.840 0.816 0.794 4 0.855 0.823 0.792 0.763 5 0.822 0.784 0.747 6 0.790 0,746 0,705 7 8 0.731 9 10 11 12 0,650 0.585 0.625 0.557 13 0.368 14 0.577 0.505 0.442 0.388 0.340 15 0.555 0.481 0417 0.362 0315 16 17 18 19 20 21 0439 0.359 0.294 0.242 22 23 24 25 0.375 0.295 0.233 26 27 28 29 0.321 0.243 0.185 30 0.30K 0.231 0.174 40 0.208 0.142 0.097 0.060 0047 0.037 0.333 0.255 0.196 0.150 0.116 0090 0.069 0054 0.042 | 0.033 0.141 0.107 0.082 0.063 0048 0.037 0.029 0.131 0.099 0.075 0057 0.044 0.033 0.026 0.067 0.046 0.032 0.022 0.015 0011 0.008 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.650 0.640 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 | 0.551 0537 0.524 05121 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0467 0.451 0437 0.423 0.410 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0497 0476 0.456 0437 0419 0.402 0386 0.370 0.355 0.341 0.328) 0.666 0.630 0.596 0.564 0.535 | 0.507 0.480 0.456 0432 0.410 0.390 0.370 0.352 0.335 0319 0.303 0.289 0.275 0.262 0.760 0.711 0.665 0.623 0.583 0.547 0,513 0.482 0452 0425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0210 0.677 0.627 0.582 | 0.540 0.502 0.467 0.434 0404 0,376 0351 0.327 0.305 0.285 0.266 0.249 0.233 0218 0.204 | 0.191 0.179 0.168 0,703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0.527 0.475 | 0429 | 0.388 0.350 0.317 0.287 0.261 0237 0215 0.195 0.178 0.162 0.148 135 0.123 0.112 0.103 0.094 0.086 0497 0444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 0.601 0.530 0.469 0415 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.11 0.099 0.088 0.078 0.069 0.062 | 0.055 0.049 0.044 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0035 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0028 0.513 0436 0.371 0317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 0494 0416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018: 0475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 0456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0022 0019 0.016 0.014 0.012 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 0406 0.326 0.262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.082 0.066 0.053 0.043 0.035 0.028 0023 0.019 0.015 0.013 0.010 0.008 0.007 0.006 0.005 0.184 0146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.016 0013 0.010 0.009 0.007 0.006 0.005 0.004 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0.026 0021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.029 0.023 0.018 0014 0.011 0009 0.007 0.006 0.005 0.004 0.003 0.002 0.026 0.020 0.016 0.012 0.010 0.008 0.022 0.017 0.014 0.011 0.008 0.006 0.020 0015 0012 0.009 0.007 0.005 0.004 0.003 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 21% 0.826 22% 23% 24% 25% 0.820 0.813 0.683 0.672 0.661 0.806 0.800 0.006 0.005 0.004 0.003 0002 0002 0.005 0.004 0.003 0.002 0.002 0.002 0.003 0.002 0.002 0.001 0.000 0.000 0.000 0.000 EXHIBIT 148-2 Present Value of an Annuity of $1 in Arrears; Ir[1-1(1+r)nl Periods 4% 5% 65 I 0.962 0.952 0.943 2 1886 1859 1833 3 2.775 2.723 2.673 7% 8% 9% 0.935 0.926 0.917 1.808 1.783 1.759 2.624 2.577 2.531 4 6 7 6.002 5.786 5582 8 6.733 6.463 6.210 9 7.435 7.108 6.802 10 5.971 6.515 8.111 7.722 7.360 7.024 11 8.760 8.306 7.887 7.499 12 9.385 8.863 8.384 7.943 ant 13 9.986 9.394 8.853 8.358 14 15 16 10.563 9.8991 9.295 8.745 11.118 10.380 9,712 9.108 11.652 10.838 10.106 9.447 17 18 20 21 22 23 24 25 26 27 28 29 30 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.909 0.901 0.893 0.885 0877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1547 1528 1509 1492 1474 1457 1.440 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2042 2011 1.981 1952 3.630 3.546 3465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2639 2.589 2.540 2.494 2.448 2.404 2.362 4452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 5.242 5076 4.917 4.767 4.623 4.486 4355 4231 4.111 3.998 3.889 3.784 3.685 3.589 3498 3.410 3326 3.245 3.167 3.092 3.020 2.951 5.389 5.206 5.033 4.868 4712 4.564 4423 4.288 4.160 4.039 3.922 3812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3518 3.421 3.329 6.247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4451 4.303 4.163 4.031 3.905 3.786 3.673 3.566 3463 6.710 6418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4659 4494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 7.139 6.805 6.495 6.207 5.938 5.687 5453 5.234 5.029 4.836 4.656 4486 4.327 4.177 4.035 3.902 3.776 3.656 7.536 7.161 6814 6.492 6.194 5918 5.660 5421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 7.904 7.487 7.103 6.750 6.424) 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4362 4.203 4.053 3.912 3.780 8.244 7.786 7.367 6.982 6.628 6.302 6.002 5.724 5468 5229 5.008 4.802 4.611 4432 4.265 4.108 3.962 3.824 8.559 8.061 7.606 7.191 6811 6462 6,142 5847 5.575 5.324 5.092 4.876 4.675 4489 4.315 4.153 4.001 3.859 8.851 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4357 4.189 4.033 3.887 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.549 7.120 6.729 6373 6.047 5.749 5.475 5.222 4.990 4.775 4576 4.391 4219 4.059 3.910 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5818 5534 5.273 5.033 4.8124608 4.419 4.243 4.080 3.928 19 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5877 5.584 | 5.316 5.070 4.843 4.635 4442 4.263 4.097 3.942 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4460 4.279 4.110 3.954 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7.562 7.102 6.687 6312 5.973 5.665 5.384 5.127 4.891 4.675 4476 4.292 4.121 3.963 14:451 13.163 12.042 11.061 10.201 9442 8.772 8.176 7.645 7.170 6.743 6359 6011 5.696 5410 5.149 4.690 4.488 4.302 4.130 3.970 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7.718 7.230 6.792 6.399 6044 5.723 5432 5.167 4925 4.703 4.499 4311 4.137 3.976 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6434 6073 5.746 5451 5.182 4.937 4.713 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 6873 6.464 6.097 5.766 5.467 5.195 4.948 4.721 15.983 14.375 | 13.003 | 11.826 10.810 9.929 9.161 6.906 8.488 7.896 7.372 6.491 6.118 5.783 5.480 5.206 4.956 4,728 43284.151 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7409 6935 6.514 6.136 5.798 5492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9307 8.602 7.984 7441 6.961 6.534 6.152 5810 5502 5223 4.970 4,739 4.528 4.335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5229 4.975 4,743 4.531 4.337 4.159 3994 17.292 15.372 13.765 12.409 11.258 10.274 9427 8.694 8.055 7496 7.003 6,566 6.177 5829 5.517 5.235 4.979 4.746 4.534 4339 4,160 3995 4.909 4.507 4318 4.143 3.981 4.514 4.323 4.147 3.985 4.520 3988 40 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5871 5548 5.258 4.997 4.760 4.544 4.347 4.166 3.999