1. Compound Interest. Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $1,000 in the bank and leave it there: a. How much interest will you earn in the first year? b. How much interest will you earn in the second year? C. How much interest will you earn in the 10th year? 2. Future Values. Compute the future value of a $100 cash flow for the following combinations of rates and times. a. r = 7%, t = 10 years b. r = 7%, t = 20 years c. r = 3%, t = 10 years d. r= 3%, t = 20 years 3. Present Values. You can buy property today for $3 million and sell it in 5 years for $4 million. (You earn no rental income on the property.) a. If the interest rate is 7%, what is the present value of the sales price? b. Is the property investment attractive to you? C. Would your answer to part (b) change if you also could earn $200,000 per-year rent on the property? The rent is paid at the end of each year