E 6-133Present and future value concepts. (12 points)

On the right are six diagrams representing six different present and future value concepts stated on the left. Identify the diagrams with the concepts by writing the identifying letter of the diagram on the blank line at the left. Assume n = 4 and i = 8%. Please show work!

Concept Diagram of Concept

_____ 1. Future value of 1. ? $1

a. | | | | |

_____ 2. Present value of 1.

?

_____ 3. Future value of an annuity $1 $1 $1 $1

due of 1. b. |- - - - | | | |

_____ 4. Future value of an ordinary

annuity of 1. ?

$1 $1 $1 $1

_____ 5. Present value of an ordinary c. | | | |- - - - |

annuity of 1.

_____ 6. Present value of an annuity ? $1 $1 $1 $1

due of 1. d. | | | | |

$1 ?

e. | | | | |

$1 $1 $1 $1 ?

f. | | | | |