a) Make a time line showing all the cash flows corresponding to the following situation: Today, January 1st, I deposit $1,400. Then, starting at the end of this year, I deposit $800 per year for 5 years (i.e. I make 5 deposits of $800).
b) What is the present value of these cash flows given an interest rate of 4.5%?
c) What is the value of these deposits exactly 5 years from now given the interest rate in b)?