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