1. Compute the future value of $1,000 compounded annually for (a) for 10 years at 6% (b) 10 years at 7% (c) 20 years at 6%. Why is the interest eamed in part (c) not twice the amount earned in part (a)? 2. Fill the blanks in the following table. Present Value Years Interest Rate Future Value 9 51,557 162,181 1,284,000 11%, 39,000 625,000 15 9% 3. An investment offers $3,600 per year for 15 years, with the first payment occurring one year from now. If the required retum is 10%, what is the value of the investment? What would the value if the payment occurred for 40 years? Forever? 4, First National Bank charges 12.2% compounded monthly on its