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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

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 5.5%, 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 $fill in the blank 1
Second Year $fill in the blank 2
Third Year $fill in the blank 3
Fourth Year $fill in the blank 4
Total present value $fill in the blank 5

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

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