an investment pays 3000 in one year, 2000 at the end of the second year and 1000 at the end of the third year. It is priced to yield 8% annually.

Find

a) the current price

b) the exact change in value if rates go down to 7.95%

c) the approximate change in price using the first order derivative

d) the approximate change in price using both the first order derivative and second order derivatives