Determine the present value of $300,000 to be received at the end of each of 4 years, using an interest rate of 7%, compounded annually, as follows:

a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar.

Exhibit 5:

b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar.

Exhibit 7:

Exhibit 5 Present Value of $1 at Compound Interest First year Second Year Third Year Fourth Year Total present value Exhibit 7 Present Value of an Annuity of $1 at Compound Interest