Find the following values. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent.

a. An initial $400 compounded for 10 years at 8%. $

b. An initial $400 compounded for 10 years at 16%. $

c. The present value of $400 due in 10 years at 8%. $

d. The present value of $1,415 due in 10 years at 16% and 8%.

Present value at 16%: $

Present value at 8%: $

e. Define present value. (choose one answer)

1. The present value is the value today of a sum of money to be received in the future and in general is less than the future value.

2.The present value is the value today of a sum of money to be received in the future and in general is greater than the future value.

3.The present value is the value today of a sum of money to be received in the future and in general is equal to the future value.

4. The present value is the value in the future of a sum of money to be received today and in general is less than the future value.

5. The present value is the value in the future of a sum of money to be received today and in general is greater than the future value.

How are present values affected by interest rates?