Present and future values for different interest rates
Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent.
a. An initial $600 compounded for 10 years at 5%.
b. An initial $600 compounded for 10 years at 10%.
c. The present value of $600 due in 10 year at 5%.
d. The present value of $1,860 due in 10 years at 10%.
e. The present value of $1,860 due in 10 years at 5%.
Define present value.
1-The present value is the value today of a sum of money to be received in the future and in general is less than the future value.
2-The present value is the value today of a sum of money to be received in the future and in general is greater than the future value.
3-The present value is the value today of a sum of money to be received in the future and in general is equal to the future value.
4-The present value is the value in the future of a sum of money to be received today and in general is less than the future value.
5-The present value is the value in the future of a sum of money to be received today and in general is greater than the future value.