On January 1, 2016, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid

Question:

On January 1, 2016, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31, 2016. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Appendix A.