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Business, 25.01.2020 02:31 zaynmaliky4748

Find the following values for the lump sum assuming annual compounding: the future value of $500 invested at 8 percent for one year. future value=$500 * (1+0.08) ^1future value=$540the future value of $500 invested at 8 percent for five years. future value=$500 * (1+0.08) ^5future value=$734.66the present value of $500 to be received in one year when the opportunity cost rate is 8 percent. present value=$500/(1+0.08) ^1present value =$462.96the present value of $500 to be received in five years when the opportunity cost rate is 8 percent. present value=$500/(1+0.08) ^5present value =$340.29

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