Computing the Time Value of Money. Using a financial calculator or time value of money tables in the Chapter Appendix, calculate the following.

a. The future value of $450 six years from now at 7 percent.

b. The future value of $900 saved each year for 10 years at 8 percent.

c. The amount a person would have to deposit today (present value) at a 6 percent interest rate to have $1,000 five years from now.

d. The amount a person would have to deposit today to be able to take out $600 a year for 10 years from an account earning 8 percent.

LO1-4