Question: On January 1, 2016, you win $3,120,000 in the state lottery. The $3,120,000 prize will be paid in equal installments of $390,000 over 8 years.

On January 1, 2016, you win $3,120,000 in the state lottery. The $3,120,000 prize will be paid in equal installments of $390,000 over 8 years. The payments will be made on December 31 of each year, beginning on December 31, 2016. If the current interest rate is 8%, determine the present value of your winnings.

Tranquility, Inc. is authorized to issue 5%, 10-year bonds payable. On January 1, 2024, when the market interest rate is 12%, the company issues $600,000 of the bonds. The bonds pay interest semiannually. (Click the icon to view Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.)

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