The state​ lottery’s million-dollar payout

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The state​ lottery’s million-dollar payout provides for ​$1.2 million to be paid in 25 installments of ​$48,000 per payment. The first ​$48,000 payment is made​ immediately, and the 24 remaining ​$48,000 payments occur at the end of each of the next 24 years. If 6 percent is the discount​ rate, what is the present value of this stream of cash​ flows? If 12 percent is the discount​ rate, what is the present value of the cash​ flows?

a.  If 6 percent is the discount​ rate, the present value of the annuity due is ​$___. ​(Round to the nearest​ cent.)

 
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