Question: Please use a table for the following questions, please show me the formulas used: 1. Assume that you are to receive $60,000 in 10 years.

Please use a table for the following questions, please show me the formulas used:

1. Assume that you are to receive $60,000 in 10 years. The current market rate of interest is 5%.

a. Using the present value of $1 table, determine the present value of this amount compounded annually.

b. Why is the present value less than the $60,000 to be received in the future?

2. Determine the present value of $300,000 to be received at the end of each of four years, using the interest rate of 8%, compounded annually, as follows:

a. By successive computations using the present value of $1 table.

b. By using the present value of an annuity of $1 table.

c. Why is the present value of the four $300,000 cash receipts less than the $1,200,000 to be received in the future?

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