For winning first prize in an essay contest, you are offered a choice of prizes: A. a single payment of P dollars now; or B. two payments: $300 one year from now and $400 two years from now. To the nearest cent, what would P have to be in order for choices A and B to have equal value? Assume that all payments will be deposited as soon as they are received into an account paying 5% interest, compounded annually.

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