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 $1.6 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 10 annual installments of $160,000 each. 1. If Mr. Ormsby can invest money at a 12% rate of return, what is the present value of his winnings? PV $1 FV $1 PV annuity FV annuity 10 periods, 12% 0.32197 3.10585 5.65022 17.54874