1. Community Home Healthhas received an invoice for medical supplies for $7,000 with terms 2/10 net 30.What is the cost of not taking the discount?

2.What is the future value of $10,000 for an interest rate of 16% and 1 annual period of compounding?for an annual interest rate of 16% and 2 semiannualperiods ofcompounding? for an annual interest rate of 16% and 4 quarterlyperiods ofcompounding?*Hint:calculate Future value using the Future Value formula and dividing the interest rate by the number of periods per year and also multiplying the exponents for the same number of periods per year) *Assume a 1 yearinvestment.

3.Explain from your findings in problem 2 why the investment increases in value when the number of compounding periods increases?