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If the interest rate this year is
7.6% and the interest rate next year will be 9.6%, what is the future value
of $1 after 2 years? What is the present value of a payment of $1 to be received
in 2 years? (Do not round intermediate
calculations. Round your answers to 4 decimal places.)
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Future value
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$
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Present value
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$
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Explanation:
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FV = PV × (1 + r0)
× (1 + r1) = $1 × 1.076 × 1.096 = $1.1793
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