Find the following values using the equations and then a fin

Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. An initial $700 compounded for 1 year at 4%. $ An initial $700 compounded for 2 years at 4%. $ The present value of $700 due in 1 year at a discount rate of 4%. $ The present value of $700 due in 2 years at a discount rate of 4%.

Solution

1)future value of 700 at 4% for one year=700(1+.04)¹ is 728.

2)Future Value of 700at 4% for two years =700(1.04)² is 757.12.

3)The present value of 700 due in one year at discount rate 4%=700/(1.04)¹=673.08

4)The present value of 700 due in two year at discounted by 4%=700/(1.04)²= 647.19