1) If $2,500 is invested at 8 percent compounded annually, how much will the investment be worth in five years?

2) If the same $2,500 is invested at 8 percent compounded quarterly, how much will it be worth in five years?

3) What is the present value of $9,000 to be received nine years from now if money in hand can be invested at 12 percent?

4) What is the present value of an annuity of $1,000 per year for the next nine years if money in hand can be invested at 12 percent?

5) Why is the answer for question 4 greater than the one for question 3?