Practice with Tables
Refer to the appropriate tables on pages 783-786.
Required:
Note: Round answers to two decimal places. Determine the:
a. future value of a single cash flow' of $5,000 that earns 7% interest compounded annually for 10 years.
b. future value of an annual annuity of 10 cash flows of S500 each that earns 7% compounded annually.
c. present value of S5,000 to be received 10 years from now, assuming that the interest (discount) rate is 7% per year.
d. present value of an annuity of $500 per year for 10 years for which the interest (discount) rate is 7% per year and the first cash flow occurs 1 year from now.
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