Find the following values. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent.

a. An initial $400 compounded for 10 years at 5%.

b. An initial $400 compounded for 10 years at 10%.

c. The present value of $400 due in 10 years at 5%.

d. The present value of $2,385 due in 10 years at 10% and 5%. Present value at 10%: $ Present value at 5%:

e. Define present value:

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.

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.

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.

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 received today and in general is greater than the future value.

How are present values affected by interest rates?