Determine the present value of $210,000 to be received at the end of each of four years, using an interest rate of 79%, compounded annually, as follows: a. By successive computations, using the present value table in Exhibit 8. Round to the nearest whole dollar. First year Second Year Third Year Fourth Year Total present value b. By using the present value table in Exhibit 10. Round to the nearest whole dollar. c. Why is the present value of the four $210,000 cash receipts less than the $340,000 to be received in the future? The present value is less due to over the 4 years.

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curv…