1. Find the future value one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years.
2. Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent.
A. What would be the future value if the interest rate is a simple interest rate?
B. What would be the future value if the interest rate is a compound interest rate?
3. Find the present value of $7,000 to be received one year from now assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7,000 is received after two years.
4. Determine the present value now of an investment of $3,000 made one year from now and an additional $3,000 made two years from now if the annual discount rate is 4 percent.