Answer:
$21.277 million
Explanation:
Data provided in the question:
Amount of lottery won = $35 million
Number of annual payments = 20
Amount of annual payment = $1.75 million
Interest rate = 6%
Now,
Present value of the payment = Payment × Present value factor
Also,
Present value factor = [1 + r]⁻ⁿ
Since the payment started immediately
Therefore,
Base year i.e n = 0
Thus,
we have
Year (n)         Annual payment              Present value
    0                    $1.75 million                   $1.75 million
    1                    $1.75 million                   $ 1.650943 million
    2                    $1.75 million                   $1.557494 million
    3                    $1.75 million                   $1.469334 million
    4                    $1.75 million                   $1.386164 million
    5                    $1.75 million                   $1.307702 million
    6                    $1.75 million                   $1.233681 million
    7                    $1.75 million                   $1.16385 million
    8                    $1.75 million                   $1.097972 million
    9                    $1.75 million                   $1.035822 million
    10                    $1.75 million                   $0.977191 million
    11                    $1.75 million                   $0.921878 million
    12                    $1.75 million                   $0.869696 million
    13                    $1.75 million                   $0.820468 million
    14                    $1.75 million                   $0.774027 million
    15                    $1.75 million                   $0.730214 million
    16                    $1.75 million                   $0.688881 million
    17                    $1.75 million                   $0.649888 million
    18                    $1.75 million                   $0.613102 million
    19                    $1.75 million                   $0.578398 million
Hence,
The present value of the  winnings = ∑ Present value of payments
= $21.277 million