The winner of an Ontario lottery has the option of a one-time payment

of $1 500 000 or to have money distributed in 10 payments of $200,000

each year. The winner has decided to take the 10 years of payments. The

first payment of $200,000 now and the other 9 payments are over the

next 9 year. How much money should the Ontario lottery have in the

bank to cover the 9 payments, assuming that the money in the bank

earns interest at the rate of 5%/year compounded yearly. Please round

the answer to the nearest cent. (Hint: Find the present value of an

annuity.)