Present and future values for different periods


Problem: Present and future values for different periods. Find the following values, using the equations and then a financial calculator compounding/discounting occurs annually.

1) An initial $500 compounded for 1 year at 6%.

2) An initial $500 compounded for 2 years at 6%.

3) The present value of $500 due in 1 year at a discount rate of 6%.

4) The present value of $500 due in 2 years at a discount rate of 6%.

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Finance Basics: Present and future values for different periods
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