1 Find the following values for a lump sum assuming annual
• compounding:
• a. The future value of $500 invested at 8 percent for one year
• b. The future value of $500 invested at 8 percent for five years
• c. The present value of $500 to be received in one year when the
• opportunity cost rate is 8 percent
• d. The present value of $500 to be received in five years when the opportunity cost rate is 8 percent
2.Find the following values assuming a regular, or ordinary, annuity:
a. the present value of $400 per year for ten years at 10 percent
b. the future value of $400 dollars for ten years at 10 percent
c. the present value of $200 dollars per year for five years at 5 percent
d. the future value of $200 dollars per year for five years.