Consider the cash flow transactions depicted in the accompanying cash flow diagram with the changing interest rates specified

(a) What is the equivalent present worth? (In other words, how much do you have to deposit now so that you can withdraw $300 at the end of year 1, $300 at the end of year 2, $500 at the end of year 3, and $500 at the end of year 4?)
(b) What is the single, effective annual interest rate over four years?

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500 00 $300 $300 0 2 3 Years 5% Interest 9% Interest 6% Interest P compounded compounded compounded monthly i mnthly i monthly