compute and interpret present and future values
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- How does the present value of a lump sum compare to the present value of an annuity?
- How does the future value of an ordinary annuity compare to the future value of an annuity due?
- How does the present value of an annuity compare to the present value of an annuity due?
- What is the value today of $500 received in 3 years if the going rate of interest is 10% per year?
- An individual has $3,000 today. What will that be worth in 7 years if the going rate of interest is 4% per year?
- What is the present value of $250 received at the end of each year for the next 8 years if the interest rate is 4.5% per year?