PRESENT AND FUTURE VALUES FOR DIFFERENT INTEREST RATES Find the following values. Compounding/discounting occurs annually.

a. An initial $500 compounded for 10 years at 6%

b. An initial $500 compounded for 10 years at 12%

c. The present value of $500 due in 10 years at 6%

d. The present value of $1,552.90 due in 10 years at 12% and at 6%

e. Define present value and illustrate it using a time line with data from Part

d. How are present values affected by interest rates?

AppendixLO1