1.Your parents purchased an investment for $2,500 ten years ago. If the investment earned 7 percent interest each year, how much is it worth today?

2. At the end of each of the past 7 years, you deposited $450 in an account that earned 5 percent of return annually. (a) How much is in the account today? (b) How much would be in the account if the deposits were made at the beginning each year rather than at the end of each year?

3.Suppose you deposit $300 in an account at the end of this year, $400 at the end of the next year, and $500 at the end of the following year. If the interest rate 8 percent, what is the present value of these cash flows?