Present and future values for different interest rates

Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent.

a. An initial $500 compounded for 10 years at 3%. $ _____

b. An initial $500 compounded for 10 years at 6%. $ _____

c. The present value of $500 due in 10 year at 3%. $ ______

d. The present value of $1,700 due in 10 years at 6%. $ _______

e. The present value of $1,700 due in 10 years at 3%. $_______

Define present value.

a) 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.

b) 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.

c) 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.

d) 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.

e) 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.