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1. Baker Brothers invested $5,000 in an account that earns 7.00% per year. How much will the investment grow to in 3 years? 6725.7215 1

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1. Baker Brothers invested $5,000 in an account that earns 7.00% per year. How much will the investment grow to in 3 years? 6725.7215 1 Investment in time period 0: $5,000 2. Rainier Corp. is looking at an investment that will pay Rainier Corp. $1,000 each year for 3 years. How much should the company pay for this annuity today, in order to earn a rate of return of 10.00%? To 1 2 3 Investment in time period o: $1,000 $1,000 $1,000 3. Shasta Inc. is looking at an investment that will pay Shasta Inc. $5,000 in year 1, $3,500 in year and $2,500 in year 3. How much should the company pay for this cash stream today, in order to earn a rate of return of 11%? 0 1 2 3 Investment in time period 0:L $5,000 $3,500 $2,500

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