You won a lottery that will pay you $50,000 each year for 40 years, with the first payment to start today. The lottery corporation gives you the option of taking the present value of the annual payments as one lump sum amount today instead of receiving the payments over 40 years. If the current interest rate on 40 year annuities is 4%, how much should the lottery corporation pay you if you decide to take the one lump sum amount today option? $ Answer