Present and future values for different interest rates

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Reference no: EM131590316

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.

Reference no: EM131590316

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