PRACTICE WITH TABLES Using the appropriate tables in the text, Required:

Determine:

a. the future value of a single cash flow of $5,000 that earns 7 percent interest compounded annually for 10 years.

b. the future value of an annual annuity of 10 cash flows of $500 each that earns 7 percent compounded annually.

c. The present value of $5,000 to be received 10 years from now, assuming that the interest (discount) rate is 7 percent per year.

d. The present value of an annuity of $500 per year for 10 years for which the interest

(discount) rate is 7 percent per year and the first cash flow occurs one year from now.

Exercise