The Clearinghouse Sweepstakes has just informed you that you have won $1 million. The amount is to be paid out at the rate of $52,000 a year for the next 16 years.
With a discount rate of 9 percent, what is the present value of your winnings? Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)