Present value of an annuity
On January 1, 2012, you win $110,000,000 in the state lottery. The $110,000,000 prize will be paid in equal installments of $11,000,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31, 2012. If the current interest rate is 6.5%, determine the present value of your winnings.