The present value of 500 to be received in five years when


To better understand concepts, PLEASE SHOW CALCULATIONS.

Find the following values for a lump sum: -

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 assuming:

a. Annual compounding

b. Semiannual compounding

c. Quarterly compounding

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Financial Management: The present value of 500 to be received in five years when
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