4) Determine the present value of $35,000 to be received at the end of each of five years, using an interest rate of 5%, compounded annually, as follows:

a) By successive computations, using the Present Value of $1 table below. You must show your work.

b) By a single computation using the Present Value of an Annuity of $1 table below. You must show your work.

Note: The two answers will not come out exactly the same, but should be close (within 1/2 percent).