(Solved): Future and present values Suppose a wealthy university booster has pledged a superstar high-school ...

Future and present values Suppose a wealthy university booster has pledged a superstar high-school sophomore soccer recruit $$\$1,000$$ as a gift the day they give a verbal commitment to ploy soccer at the booster's alma mater. Assuming a constant interest rate of $$7\%$$, consider the present and future values of this gift, depending on when the recruit announces their commitment. Complete the first row of the following table by determining the value of the gitt in one and two years with interest if you become engaged coday and save the money. Now complute the first column of the previous table by computing the present value of the gin if the recruit commis in one year or owo years. The present value of the pint is If the recruit commits in one year than it is if you get engaged in two years. Compiete the first row of the following tabie by determining the value of the git in one and two years with interest if you become engaged today and save the money. Now compite the first column of the previou 1,144.90 mputing the present value of the gint if the recruit commits 1 one year or tive years. The presem yalue of the gif is 1,225.04 commies in one year than it is if you get engaged in two years. Now complete the first column Wous table by computing the present vatue of the gift if the recruit comirnts in one year or rwo years. The present valse of the gitis If the recruit commits in one year than it is if you get engaged in two years.