Using the equations and tables in Appendix 12A of this Chapter, determine the answers to each of the following independent situations:

a. The future value in two years of $4,000 invested today in a certificate of deposit with interest compounded annually at 10 percent.

b. The present value of $6,000 to be received in five years, discounted at 8 percent.

c. The present value of an annuity of $20,000 per year for four years discounted at 12 percent.

d. An initial investment of $29,480 is to be returned in six equal annual payments. Determine the amount of each payment if the interest rate is 16 percent.

e. A proposed investment will provide cash flows of $6,000, $8,000, and $20,000 at the end of Years 1, 2, and 3, respectively. Using a discount rate of 18 percent, determine the present value of these cash flows.

f- — Find the present value of an investment that will pay $6,000 at the end of Years 8, 9, and 10. Use a discount rate of 12 percent. LO.1