1. Value of Investment. Dawn decides to invest $2,000 each year in stock at the end of each of the next five years. She believes she can earn a 9% return over that time period. How much will Dawn's investment be worth at the end of five years?
2. Value of Investment. Bob purchased a dot-com stock, which was heavily advertised on the Internet, for $40 per share shortly after the stock's IPO. Over the next three years, the stock price declined by 15% each year. What is the company's stock price after three years?