Homework 4.1, Chapter 9 Find the following values for a lump sum assuming annual compounding. a. The future value of $500 invested at 4% for one year Pv= present value $(500.00) $520.00 r=rate of interest 4% n=number of perioids 1 r+1 104% FV = PV * (1+r)n ($520) b. The future value of $600 invested at 3% for five years Pv= present value $(600.00) $695.56 r=rate of interest 3% n=number of perioids 5 r + 1 103% FV = PV * (1+r)n $(3,090.00) c. The present value of $700 invested at 5% for one year Pv= FV/(1+r)n $(666.67) $666.67 FV = PV * (1+r)n ($700) r = rate of interest 5% 105% n=number of perioids 1.00 d. The present value of $800 invested at 3% for five years Pv= FV/(1+r)n $(3,883.50) $690.09 FV = PV * (1+r)n -800 r = rate of interest 3% 103% n=number of perioids 5