. A small business has been offered a 7-year investment project and the estimated net

return (profit) in the end of each year is as follows:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Profit 3,000 3,000 3,000 2,000 2,000 2,000 2,000

Suppose that each years net profit will be deposited into a new savings account in the end of

year and the account earns a fixed annual interest rate of 8%. Calculate the balance of the

account at the end of the 7th year (Hint: this is similar to part of your Group project 1 and

show the factor vales from the tables and your calculation. You will earn no more than 6

points if you do the calculation year by year for 7 years):