Present Value of an Annuity

Determine the present value of $300,000 to be received at the end of each of four years, using an interest rate of 6%, compounded annually, as follows:

a.By successive computations, using the present value table inExhibit 4. Round to the nearest whole dollar.

First year$Second Year$Third Year$Fourth Year$Total present value$b.By using the present value table inExhibit 5. Round to the nearest whole dollar.