You have won

$900,000

in a lottery. Your winnings will be paid to you in equal annual year-end installments of

$45,000

over

20

years. You estimate that you can earn

8%

on your investments. The present value of your

$900,000

winnings would be closest to (If using present value tables, use factor amounts rounded to three decimal places, X.XXX. Round your final answer to the nearest whole dollar.)

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(Click the icon to view Present Value of Ordinary Annuity of $1 table.)

A.

$900,000.

B.

$458,190.

C.

$441,810.

D. $945,000

Present Value of Ordinary Annuity of $1
Periods	4%	5%	6%	7%	8%	10%	12%	14%	16%
Period 1	0.962	0.952	0.943	0.935	0.926	0.909	0.893	0.877	0.862
Period 2	1.886	1.859	1.833	1.808	1.783	1.736	1.690	1.647	1.605
Period 3	2.775	2.723	2.673	2.624	2.577	2.487	2.402	2.322	2.246
Period 4	3.630	3.546	3.465	3.387	3.312	3.170	3.037	2.914	2.798
Period 5	4.452	4.329	4.212	4.100	3.993	3.791	3.605	3.433	3.274
Period 6	5.242	5.076	4.917	4.767	4.623	4.355	4.111	3.889	3.685
Period 7	6.002	5.786	5.582	5.389	5.206	4.868	4.564	4.288	4.039
Period 8	6.733	6.463	6.210	5.971	5.747	5.335	4.968	4.639	4.344
Period 9	7.435	7.108	6.802	6.515	6.247	5.759	5.328	4.946	4.607
Period 10	8.111	7.722	7.360	7.024	6.710	6.145	5.650	5.216	4.833
Period 11	8.760	8.306	7.887	7.499	7.139	6.495	5.938	5.453	5.029
Period 12	9.385	8.863	8.384	7.943	7.536	6.814	6.194	5.660	5.197
Period 13	9.986	9.394	8.853	8.358	7.904	7.103	6.424	5.842	5.342
Period 14	10.563	9.899	9.295	8.745	8.244	7.367	6.628	6.002	5.468
Period 15	11.118	10.380	9.712	9.108	8.559	7.606	6.811	6.142	5.575
Period 16	11.652	10.838	10.106	9.447	8.851	7.824	6.974	6.265	5.668
Period 17	12.166	11.274	10.477	9.763	9.122	8.022	7.120	6.373	5.749
Period 18	12.659	11.690	10.828	10.059	9.372	8.201	7.250	6.467	5.818
Period 19	13.134	12.085	11.158	10.336	9.604	8.365	7.366	6.550	5.877
Period 20	13.590	12.462	11.470	10.594	9.818	8.514	7.469	6.623	5.929