You are analyzing the value of a lump sum. To help your calculation, you visually represent the situation by using the following timeline.

$ 5000
|------------|-------------|------------|-----------|------------|-------------|

Yr0 Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Timeline

Focal Date

As shown above, you must calculate the

a.

present value of $ 5000 by compounding interest for a period of 6 years

b.

None of the available options

c.

present value of $ 5000 by discounting interest for a period of 6 years

d.

future value of $ 5000 by compounding interest for a period of 6 years

e.

future value of $ 5000 by discounting interest for a period of 6 years

	Year 1	Year 2	Year 3	Year 4
Option 1	$ 200	$ 200	$ 200	$ 200
Option 2	$ 150	$ 200	$ 200	$ 200
Option 3	$ 150	$ 200	200	$ 250
Option 4	$ 250	$ 200	$ 200
Option 5	$ 200	$ 200