Present and future values for different interest rates

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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 $800 compounded for 10 years at 7%. $

b. An initial $800 compounded for 10 years at 14%. $

c. The present value of $800 due in 10 year at 7%. $

d. The present value of $2,150 due in 10 years at 14%. $

e. The present value of $2,150 due in 10 years at 7%. $

Define present value.

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.

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.

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.

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.

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.

How are present values affected by interest rates?

Reference no: EM131855651

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