could show work on how to solve this problem? Thanks

Future Value Example: Suppose you have $1,000 now in a savings account that is earning 6%. You want to add $500 one year from now and $700 two years from now. Today 1 Year 2 Years $1,000 $500 $700 How much will you have two years from now in your savings account (after you make your $700 deposit)? Simply look at each payment separately and move them through time as we did in the earlier chapter. Today 1 Year 2 Years $1,000 $500 $700 Present Value Example: Consider receiving the following cash flows: Year 1 CF = $200 Year 2 CF = $400 Year 3 CF = $600 Year 4 CF = $800 If the discount rate is 12%, what would this cash flow be worth TODAY? 1 2 3 Today 4 $200 $400 $600 $800