Time Value of Money: Basics

Using Excel or the equation and tables in Appendix $12$A of this chapter, determine the answers to each of the following independent situations.

Round answers to the nearest whole number.

$($a$)$ The future value in three years of $$1,000$ deposited today in a savings account with interest compounded annually at $9$ percent.

$

$($b$)$ The present value of $$7,000$ to be received in two years, discounted at $10$ percent.