Present Value of an Annuity Determine the present value of $260,000 to be received at the end of each of four 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. First year $ Second Year $ Third Year Fourth Year $ $ Total present value $ b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar. c. Why is the present value of the four $260,000 cash receipts less than the $1,040,000 to be received in the future? The present value is less due to over the 4 years