1.) Suppose you deposit $2,500 at the end of year 1, $2,000 at the end of year 2, $750 at the end of year 3, and $1,300 at the end of year 4.

a. Assuming that these amounts will be compounded at an annual rate of 15 percent, how much will you have on deposit at the end of five years?

b. Assume you discount these amounts at 15%, what is the present value of the cash flows?