Problem 5-10 Present and future values for different interest rates Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent. a. An initial $700 compounded for 10 years at 4%. b. An initial $700 compounded for 10 years at 8%. c. The present value of $700 due in 10 year at 4% d. The present value of $1,500 due in 10 years at 8%. e. The present value of $1,500 due in 10 years at 4%. Define present value. I. 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. II. 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. III. 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. IV. 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. v. 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. -Select- How are present values affected by interest rates? -Select- 49- 49