Question: Answer all questions and show all work, if applicable. Partial credit will not be provided without work, if work can be shown. 1. a) Calculate

Answer all questions and show all work, if applicable. Partial credit will not be provided without work, if work can be shown.

1. a) Calculate the present value of $500 with a discount rate of 7% for a period of 10 years.

b) Calculate the future value of $1,000 with an interest rate of 5% for a period of 20 years.

c) What is the annual interest rate if the present value is $100, future value is $200, and the time period is 5 years?

d) What is the total and cumulative present value of the following cash flows at an interest rate of 5%? Year 1: $200, Year 2: $500; Year 3: $700.

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