6 Future Value and Present Value.

(a) Calculate the future value of £5,000 at the end of 10 years at an annual compound interest rate of 10%.

(b) Calculate the present value of £8,000 at the end of 8 years at a discount rate of 8%.

(c) Find the future value of a £4,000 5 year annuity at an annual compound rate of 6%.

(d) Determine the present value of a £2,000 6 year annuity at a discount rate of 7%.

(e) Determine the future value of £5,000 at the end of a 5-year period assuming compounding on (i) a semi-annual basis and (ii) a 2-monthly basis at 6%
interest rate.

(f) Calculate the present value of the following perpetuities:
(i) £1,000 at a discount rate of 8%;
(ii) £1,000 at a discount rate of 8% and with a growth factor of 3%.