Answer
200 dollars to be received in 10 years has a present value of 101.67
300 dollars to be received in 20 years has a present value of 77.53
Work Step by Step
7% interest rate
200 dollars, 10 years
$C = 200/(1+.07)^{10}$
$C = 200/(1.07^{10})$
$C = 200/1.96715$
$C = 101.67$
7% interest rate
300 dollars, 20 years
$C = 300/(1+.07)^{20}$
$C = 300/(1.07^{20})$
$C = 300/3.86968$
$C = 77.53$
