Response to the following questions:
1. What is the future value on January 1, 2016 of $20,000 deposited on January 2, 2010, which accumulates interest at 10% compounded annually?
2. What is the present value on January 1, 2010 of $40,000 to be received on January 1, 2013 and discounted 8% compounded annually?
Show all work and calculations.