You invest $2,500 a year for three years at 8 percent.

a. What is the value of your investment after one year? Multiply $2,500 < 1.08.

b. What is the value of your investment after two years? Multiply your answer to part a by 1.08.

c. What is the value of your investment after three years? Multiply your answer to part b by 1.08. This gives your final answer.

d. Confirm that your final answer is correct by going to Appendix A (future value of $1), and looking up the future value for n = 3, and 1 = 8 percent.

Multiply this tabular value by $2,500 and compare your answer to the answer in part

c. There may be a slight difference due to rounding.