Click here to read the eBook Future Values Click here to read the eBook: Present Values PRESENT AND FUTURE VALUES FOR DIFFERENT PERIODS Find the following values using the equations and then a financial calculator Compounding/discounting cours annually. Do not round Intermediate calculations. Round your answers to the nearest cent An initial $400 compounded for 1 year at b. An initial $400 compounded for 2 years at 6% c. The present value of $400 due in 1 year at a discount rate of 6% d. The present value of $400 due in 2 years at a discount rate of 6% Click here to read the eBook: Present Values PRESENT AND FUTURE VALUES FOR DIFFERENT INTEREST RATES Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent. a. An initial $500 compounded for 10 years at 5%. O b. An initial $500 compounded for 10 years at 10%. o c. The present value of $500 due in 10 year at 5%. o d. The present value of $1,795 due in 10 years at 10%. $ e. The present value of $1,795 due in 10 years at 5%. 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. 11. 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 -Select- How are present values affected by interest rates? -Select- Click here to read the eBook: Finding the Interest Rate, I Click here to read the eBook: Comparing Interest Rates EFFECTIVE RATE OF INTEREST Find the interest rates earned on each of the following. Round each answer to two decimal places. a. You borrow $700 and promise to pay back $770 at the end of 1 year. % 0 o b. You lend $700 and the borrower promises to pay you $770 at the end of 1 year. c. You borrow $81,000 and promise to pay back $119,674 at the end of 8 years. od. You borrow $20,000 and promise to make payments of $6,687.60 at the end of each year for 5 years. ooooool Icon Key