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. 

$$PV=\frac{25,000}{(1+0.11)^8}$$ = $10,848.16 
$$PV=\frac{FV}{(1+r)^n}$$ 