1. Find the following Values using the equations, then by a financial calculator. Compounding / discounting occurs annually.

a. An initial $600 compounded for 1 year at 6%.

b. An initial $600 compounded for 2 years at 6%.

c. The present value of $600 due in 1 year at a discount rate of 6%.

d. The present value of $600 due in 2 years at a discount rate of 6%.

2. Find the present values of these ordinary annuities. Discounting occurs once a year.

a. $600 per year for 12 years at 8%.

b. $300 per year for 6 years at 4%.

c.$500 per year for 6 years at 0%.

3. What is the present value of a $600 perpetuity if the interest rate is 5%? If interest rates doubled to 10%, what would its present value be?