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Solving Present Value and Future Value Problems

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Answer these problems and show your work:
1. Calculate the present value of the following lump sums:
a. $100,000 to be received five years from now with a 5% annual interest rate
b. $200,000 to be received 10 years from now with a 10% annual interest rate

2. Calculate the future value of the following lump sums:
a. $100,000 if invested for five years at a 5% annual interest rate
b. $200,000 if invested for 10 years at a 10% annual interest rate

3. Calculate the present value of these ordinary annuities:
a. $100,000 to be received each year for five years with a 5% annual interest rate
b. $200,000 to be received each year for 10 years with a 10% annual interest rate

4. Calculate the future value of these ordinary annuities:
a. $100,000 if invested each year for five years at a 5% annual interest rate
b. $200,000 if invested each year for 10 years at a 10% annual interest rate

5. Calculate the present value of these perpetuities:
a. $100,000 to be received each year forever with a 5% annual interest rate
b. $200,000 to be received each year forever with a 10% annual interest rate

Submit your assignment by creating a table in Word. Interpret the results in Word.

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