|Joanne wins first prize in the International Tournament of Minds. She has the choice of two prizes:
Prize 1: An annuity of $2108.03 a year for 8 years invested at the end of each year and earning 11%pa. No withdrawals can be made during the 8 years.
Prize 2: A lump sum payment paid today equal to the total annuity.
Calculate the amount of the lump sum in Prize 2 given that the future value of Prize 1 is $25,000.