The winner of a lottery is awarded $7,000,000 to be paid in annual installments of $350,000 for 20 years. Alternatively, the winner can accept a "cash value" one-time payment of $3,150,000. The winner estimates he can earn 7% annually on the winnings. What is the present value of the installment plan? (Round your answer to two decimal places.)
$
Should he choose the one-time payment instead?
Yes, he should choose the one-time payment.
No, he should not choose the one-time payment.
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