Present Value of an Annuity Determine the present value of $220,000 to be received at the end of each of four years, using an interest rate of 10%, compounded annually, as follows: a. By successive computations, using the present value table in Exhibit 8. Round to the nearest whole dollar. First year 199,980 Second Year 181,720 x Third Year 105,220 Fourth Year 150,260 Total present value 697,180 x b. By using the present value table in Exhibit 10. Round to the nearest whole dollar. $ 697,180 X c. Why is the present value of the four $220,000 cash receipts less than the $880,000 to be received in the future? The present value is less due to the compounding of interest over the 4 years