Present value of an annuity Determine the present value of $200,000 to be recelved at the end of each of 4 years, using an interest rate of 10%, compounded annually, as follows: a. By succiossive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. b. By usino 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 $200,000 cash receipts less than the $800,000 to be received in the future? The present value is less due to Lover the 4 years. Exhibit 5 Present Value of $1 at Compound Interest Exhibit 7 Present Value of an Annuity of \$1 at Compound Interest