Perform the following tasks:

Step 1: Find following values for a lump sum assuming annual compounding of interest:

o The future value of $1000, invested at 5 % for 1 year

o The future value of $1000, invested at 5% for 5 years

o The present value of $1000, to be received in one year when the discount rate is 10%

o The present value of $1000, to be received in five years when the discount rate is 10%

Step 2: Repeat the calculation above, but assume interest is compounded quarterly.

Can you explain how you arrived at your answers? What is the Excel formula?