You wish to determine the equivalent value of a payment or stream of payments at a chosen point of reference. To help your calculation, you visually represent the situation by using the following timeline.

$500050005000500050005000$ stream of payments

$|---------|----------|----------|----------|----------|----------|$

Yr$0$ Yr$1$ Yr$2$ Yr$3$ Yr$4$ Yr$5$ Yr$6$

Timeline

$$

Focal Date

What is shown above is the

a$.$

future value of a lump sum

b$.$

present value of a lump sum

c$.$

future value of an ordinary annuity

d$.$

present value of a perpetuity

e$.$

present value of an ordinary annuity