What is the value at the end of the first year (the value at time 1) of $300 payable at the beginning of each year for five years? Assume that the first payment is not received until the beginning of the third year (thus the last payment is received at the beginning of the seventh year). Use a 10% annual effective interest rate, and round your answer to the nearest $1.00.

a. $1,137

b. $854

c. $940

d. $1,034