For each of the questions below, draw the time line and compute the present value or future value as required. Show all your work. Write the formula and show what you plugged in.

a. Present value of $5,000 received 10 years from today if the interest rate is 12% per year.

b. Future value of $10,000 received 5 years from today if left in an account until 40 years from today, when the rate of return is 10% per year.

c. Present value of $5,000 received 4 years from today and $6,000 received 20 years from today if the rate of return is 8% per year.

d. Future value of the cash flows in part (c) above when evaluated 50 years from today at 8% per year.