4. Problem 5,10 (Present and Future Values for Different Interest Rates) Find the following yalues. Compounding/discounting occurs annually. Do not round intermediate calculations, Round your answers to the nearest cent. a. An inibial $400 compounded for 10 years at 7%. 5 b. An initisl $400 compounded for 10 years at 14%. 5. c. The present value of $400 due in 10 years at 7% $ d. The present value of $1,865 due in 10 years at 14% and 7%. Present value at 14%:$ Present volue at 7%:5 e. Define present value. 1. The present value is the value today of a sum of money to be received in the future and in general is less than the future value. II. The present value is the value today of a sum of money to be received in the future and in general is greater than the future value. III. The present value is the value today of a sum of money to be received in the future and in general is equal to the future value. IV. The present value is the value in the future of a sum of money to be received today and in general is less than the future value. , The present value is the value in the future of a sum of money to be recelved today and in general is greater than the future value. b. An initial $400 compounded for 10 years at 14%. c. The present value of $400 due in 10 years at 7%. $ d. The present value of $1,865 due in 10 years at 14% and 7%. Present value at 14% : $ Present value at 7% i 5 c. Define present value. 1. The present value is the value today of a sum of money to be received in the future and in general is less than the future value: II. The present value is the value today of a sum of money to be recelved in the future and in general is greater than the future value. III. The present value is the value today of a sum of money to be received in the future and in general is equal to the future value. TV. The present value is the value in the future of a sum of money to be received today and in general is leas than the future value. V. The present value is the value in the future of a sum of money to be recelved today and in generai is greater than the future value. sent values affected bv interest rates? b. An initial $400 compounded for 10 years at 14% 5 c. The present value of $400 due in 10 years at 7%. $ d. The present value of 51,865 due in 10 years at 14% and 7%. Present value at 14% is Present value at 7%:$ e. Define present value. 1. The present value is the value today of a sum of monoy to be received in the future and in general is less than the future value. II. The present value is the value today of a sum of money to be received in the future and in general is greater than the future value. III. The present value is the value today of a sum of money to be received in the future and in general is equal to the future value. IV: The present value is the value in the future of a sum of money to be received today and in general is less than the future value. V. The present value is the value in the future of a sum of money to be received today and in general is greater than the future value. How are present values affected by interest rates? Sislect= Assumicg positive intersst tates, the prosent vabue wil decresse an the interear rato decrusm. Ascuining posirive interest rates, the present value wilt nes change as the interest rate incresirs
