# Question

Refer to the appropriate tables in the text.

Required:

Determine:

a. The present value of $ 1,200 to be received in seven years, assuming that the interest (discount) rate is 8 percent per year.

b. The present value of an annuity of seven cash flows of $ 1,200 each (one at the end of each of the next seven years) for which the interest (discount) rate is 8 percent per year.

c. The future value of a single cash flow of $ 1,200 that earns 8 percent per year for seven years.

d. The future value of an annuity of seven cash flows of $ 1,200 each (one at the end of each of the next seven years), assuming that the interest rate is 8 percent per year.

Required:

Determine:

a. The present value of $ 1,200 to be received in seven years, assuming that the interest (discount) rate is 8 percent per year.

b. The present value of an annuity of seven cash flows of $ 1,200 each (one at the end of each of the next seven years) for which the interest (discount) rate is 8 percent per year.

c. The future value of a single cash flow of $ 1,200 that earns 8 percent per year for seven years.

d. The future value of an annuity of seven cash flows of $ 1,200 each (one at the end of each of the next seven years), assuming that the interest rate is 8 percent per year.

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