The winnings' current value should be $9300.82.
The fact that
Cash inflow times the present value of the discounting component (rate, time) equals the present value of inflows.
The present value calculation formula is as follows:
P = FV (1 + r)^-n
$1.25 million is the FV, or future value.
P = Current Value
R is equal to 6.4 percent interest.
N is equal to 79 years.
1.25 (1.064)^-79 = $9,300.82
Hence the vale of winnings will be $9,300.82
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