1. If you invest $ 500 at an annual interest rate of 8% per year how much would you have at the end of 12 years using compound interest ?

$ 1259.08

$1486.12

$1295.93

$ 1586.08

2. Suppose you are looking at the following possible cash flows:

-year 1 cf=$100

-years 2 and 3 cf's=$200

-years 4 and 5 cfs= $300

-the required discount rate is 8%

What's the value of the CF'S today?