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.)