# Present and future values sample calculations

Find the following values for a lump sum assuming semiannual compounding:

a. The future value of $500 invested at 8% for one year.

b. The future value of $500 invested at 8% for five years.

c. The present value of $500 to be received in one year when the opportunity cost rate is 8%.

d. The present value of $500 to be received in five years when the opportunity cost rate is 8%.

https://brainmass.com/business/interest-rates/present-future-values-calculations-592265

#### Solution Preview

Find the following values for a lump sum assuming semi-annual compounding:

a. The future value of $500 invested at 8% for one year.

Present Value=PV=$500

Number of periods=n=1*2=2 half years

Rate of return per period=r=8%/2=4% ...

#### Solution Summary

The solutions for the given problems depict the methodology to estimate the present/future value of single cash flow.

$2.19