1. The company issues a note to an entity to borrow cash for five years and will pay $500,000 to the entity at the end of the fifth year but not pay any interest. If the annual market interest rate is 4%, please calculate the present value of the note (compounded annually and rounded to the nearest dollar).

Please answer number 2 only!

2. Based on Part 1, if the company will pay $500,000 at the end of the fifth year and interest $25,000 at the end of each of the five years, please calculate the present value of the note (rounded to the nearest dollar).