Ch 05: End-of-Chapter Problems - Time Value of Money Q Seart briscous eBook Find the following values. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent a. An initial $800 compounded for 10 years at 7%. b. An initial $800 compounded for 10 years at 14%. c. The present value of $800 due in 10 years at 7%. d. The present value of $2,940 due in 10 years at 14% and 7%. Present value at 14%:$ Present value at 7%: $ 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 DIL. 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 ture value -Select- How are present values affected by interest rates? Assning positive interest rates, the present will increases the interest rate inceses Assuming veterest rates, the presentave will decreases the Interest rate increases Assuming o ve interest rates the present will decrease as the rest rate decreases Assuming positive interest rates, the present value will not change as the interest rate increases Assuming positive interest rates, the reseau wel not change as the new rate decrease