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%. 5 c. The present value of $400 due in 10 years at 8%. 4 d. The present value of $2,450 due in 10 years at 16% and 8%. Present value at 16\%: $ Present value at 8%:5 e. Define present value. 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. II. 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. III. The present value is the value today of a sum of money to be recelved in the future and in general is equal to the future value. T.. 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. v. The present value is the volue 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? assuming poivive intereu rotes, the present value will decresse as the intereat rate decreases. o -Selectrs at 8%. Assuming positive interest rates, the present value will increase as the rs at 16% interest rate increases. Assuming positive interest ars at 8%. rates, the present value will decrease as the interest rate increases. years at 16% and 8%. Assuming positive interest rates, the present value will decrease as the interest rate decreases. oday of a sum of money to b Assuming positive interest oday of a sum of money to be rates, the present value will not change as the i the future of a sum of mone interest rate increases. I the future of a sum of mone Assuming positive interest st rates? rates, the present value will not change as the interest rate decreases