a. Calculate each of the following:

i. The present value of $300 to be received at the end of three years if invested at 6%.

ii. The present value of $300 to be received at the end of four years if invested at 6%.

iii. The present value of $300 to be received at the end of four years if invested at 5%.

iv. The present value of $300 to be received at the end of each year for four years if invested at 6%.

v. The present value of $100 to be received at the end of one year, $200 to be received at the end of two years, $300 to be received at the end of three years, and $600 to be received at the end of four years at 6%.

b. Inspect your results. What do they suggest to you about the effect of time periods and interest rates on the present value of amounts to be received in the future?