PROBLEM 1
Find the following values for a lump sum assuming annual compounding:
a. The future value of $7,500 invested at 4.52 percent for one year
b. The future value of $7,500 invested at 4.52 percent for five years
c. The present value of $8,700 to be received in one year when the opportunity cost rate is 3.5 percent
d. The present value of $8,700 to be received in five years when the opportunity cost rate is 3.5 percent