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

Determine:

a. the present value of $1,200 to be received in seven years, assuming that the interest

(discount) rate is 8 percent per year.

b. the present value of an annuity of seven cash flows of $1,200 each (one at the end of each of the next seven years) for which the interest (discount) rate is 8 percent per year.

c. the future value of a single cash flow of $1,200 that earns 8 percent per year for seven years.

d. the future value of an annuity of seven cash flows of $1,200 each (one at the end of each of the next seven years), assuming that the interest rate is 8 percent per year.

Exercise