Answer:
a. The present value of a future value of $10,000 is $7,310.
b. The present value of an annuity for a future value of $10,000 is $1,043.54.
c. Yes, you will retire with $1,036,226.07
.
Explanation:
a) Data and Calculations:
Future value = $10,000
Interest - 8% compounded semiannually
Period of investment = 4 years
Using the present value table, the discount factor of 0.731, the future value of $10,000 is $7,310
b) You will need to contribute $1,043.54 at the beginning of each period to reach the future value of $10,000.00.
FV (Future Value)	$10,000
PV (Present Value)	$7,306.90
N (Number of Periods)	8.000
I/Y (Interest Rate)	4.000%
PMT (Periodic Payment)	$1,043.54
Starting Investment	$0.00
Total Principal	$8,348.30
Total Interest	$1,651.70
c)  $1,000,000 in 40 years:
FV (Future Value)	$1,036,226.07
PV (Present Value)	$47,698.45
N (Number of Periods)	40.000
I/Y (Interest Rate)	8.000%
PMT (Periodic Payment)	$4,000.00
Starting Investment	$0.00
Total Principal	$160,000.00
Total Interest	$876,226.07