#1

PROBLEMS connect Basic Problems 1. You invest $3,000 for three years at 12 percent. Selected problems are available with Connect. Please see the preface for more information. Fu (Le What is the value of your investment after one year? Multiply $3,000 x 1.12. What is the value of your investment after two years? Multiply your answer to part a by 1.12. What is the value of your investment after three years? Multiply your answer to part b by 1.12. This gives your final answer. Combine these steps using the formula FV--PV X (I + i)" to find the future value of $3,000 in 3 years at 12 parcent interest. a. b. c. d. What is the present value of a. b. c. 2. $7,900 in 10 years at 11 percent? $16,600 in 5 years at 9 percent? $26,000 in 14 years at 6 percent? 3. a. What is the present value of $140,000 to be received after 30 years with aP 14 percent discount rate? b. Would the present value of the funds in part a be enough to buy a $2.,900 concert ticket