Determine the value that is described in each of the following investments. Assume that no money is withdrawn during the investment period, and provide 1 possible explanation of the use of each type of investment.
- Using standard Net Present value tables, determine the present value of a dollar for $10,000.00 invested at 8%, compounded annually for a period of 5 years.
- Using standard Net Present value tables, determine the future value of a dollar for a one-time $10,000.00 deposit earning 8% interest compounded annually to be withdrawn in 5 years.
- Using standard Net Present value tables, determine the present value of an annuity that earns $10,000.00 payable in 5 annual installments over a period of 5 years, assuming 8% interest compounded annually.
- Using standard Net Present value tables, determine the future value of an annuity of $10,000.00 annual deposits earning 8% interest compounded annually at the end of 5 years.