The state lottery commission pays winner of "Million Dollar" lottery 20 installments of $50,000/year. Commission makes first payment of $50,000 immediately and other payments at the end of every next 19 yr. Find how much money commission must have in bank initially to guarantee payments, suppose that balance on deposit with bank earns interest at rate of 6%/year compounded yearly.
Determine present value of the annuity.
i. $540,539.39
ii. $553,636.65
iii. $697,483.72
iv. $749,369.37
v. $607,905.82