Shelley wants to cash in her winning lottery ticket she can

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Present and future value tables of $1 at 3% are presented below:

N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1
1 1.03000 0.97087 1.0000       0.97087       1.0300       1.00000      
2 1.06090 0.94260 2.0300       1.91347       2.0909       1.97087      
3 1.09273 0.91514 3.0909       2.82861       3.1836       2.91347      
4 1.12551 0.88849 4.1836       3.71710       4.3091       3.82861      
5 1.15927 0.86261 5.3091       4.57971       5.4684       4.71710      
6 1.19405 0.83748 6.4684       5.41719       6.6625       5.57971      
7 1.22987 0.81309 7.6625       6.23028       7.8923       6.41719      
8 1.26677 0.78941 8.8923       7.01969       9.1591       7.23028      
9 1.30477 0.76642 10.1591       7.78611       10.4639       8.01969      
10 1.34392 0.74409 11.4639       8.53020       11.8078       8.78611      
11 1.38423 0.72242 12.8078       9.25262       13.1920       9.53020      
12 1.42576 0.70138 14.1920       9.95400       14.6178       10.25262      
13 1.46853 0.68095 15.6178       10.63496       16.0863       10.95400      
14 1.51259 0.66112 17.0863       11.29607       17.5989       11.63496      
15 1.55797 0.64186 18.5989       11.93794       19.1569       12.29607      
16 1.60471 0.62317 20.1569       12.56110       20.7616       12.93794      

Shelley wants to cash in her winning lottery ticket. She can either receive seven, $200,000 semiannual payments starting today, or she can receive a lump-sum payment now based on a 6% annual interest rate. What is the equivalent lump-sum payment? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)

Reference no: EM13589544

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