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Your dreams of becoming rich have just come true. You have won the State of Tranquility's Lottery. The State offers you two payment plans for the $4,000,000 advertised jackpot. You can take annual payments of $160,000 at the end of the year for the next 25 years or $1,864,573 today.

a.If your investment rate over the next 25 years is 9%, what is the present value of the $160,000 annual payments today?