You expect to receive the following cash flows:

Year	Cash flow
1	$600
2	$500
3	$400
4	$300
5	$200

a) What is the present value of these cash flows if the interest rate is 7%?

b) What is the future value of these cash flows (in 5 years) if the interest rate is 7%?

c) Using your answer from a), suppose you deposit that amount of money today for 5 years at an interest rate of 7%. How much will you have 5 years from now.

d) Suppose you expect interest rates to be higher in the future. Your best guess of what nates will be is the following:

1 year from now	2 years from now	3 years from now	4 years from now
8%	9%	10%	11%

If your forecast of interest rates is correct, how much money will you have 5 years from now?