Find the following values for a lump sum assuming annual compounding: The future value of $500 invested at 8 percent for one year The future value of $500 invested at 8 percent for five years The present value of $500 to be received in one year when the opportunity cost rate is 8 percent The present value of$500 to be received in five years when the opportunity cost rate is 8 percent
9.2
Repeat problem 9.1 above, but assume the following compounding conditions:
a. semi-annual
b. quarterly