1a. What would the future value of $500 be after 5 years at 10% compound interest? N 5 10% US$500 PV FV PMT US$0 1b. At 10% simple interest? US$50.00 N 5 Annual interest 10% 5*10 but use cells in the forumula Total interest US$500 PV PMT US$0 FV= 2. Suppose you currently have $3,000 and plan to purchase a 3-year certificate of deposit (CD) that pays 2% interest compounded annually. How much will you have when the CD matures? N 3 2% US$3,000 PV FV PMT US$0 3a. Suppose a U.S. government bond promises to pay $3,000 three years from now. If the going interest rate on 3-year government bonds is 4%, how much is the bond worth today? N 3 4% PMT US$0 US$3,000 FV PV 3b. How would your answer change if the bond matured in 5 rather than 3 years? N 5 4% US$0 PMT US$3,000 FV PV =