Exercise $12$A$-6($Algo$)$ Basic Present Value Concepts $[$L$012-7]$

The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr$.$ Ormsby won the week's grand prize totaling $$1\mathrm{.}44$ million. The State Lottery Commission indicated that Mr$.$ Ormsby will receive his prize in $20$ annual installments of $$72,000$ each.

Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

If Mr$.$ Ormsby can invest money at a $12\%$ rate of return, what is the present value of his winnings? $($Enter your answer In dollars and not In millions of dollars.$)$

Present value