An investment will pay $1,000 now, $2,000 in one year, and $3,000 at the end of year two. If similar investments yield 15% compounded, what is the PV and the appropriate price to pay for the investment now? $ It is important to carefully count the number of periods that each expected cashflow must be brought forward or backward in time to determine the number of compound- ing or discounting to apply to each payment. An investment requires a deposit of $1,000 now and $5,000 at the end of year five. If the investment vehicle yields 15% per year compounded, what will be the balance of the investment at the end of year six? $ An investment will pay $1,000 now and $5,000 at the end of year five. If similar investments yield 15% compounded, what is the PV and the appropriate price to pay for the investment now? $ An investment of $500 deposited at the end of the first period, $800 at the end of period two, and $300 at the end of the third period will be worth $ at the end of t, if the compounded interest rate is 10% per period. 9. An expected growing flow of funds, occurring at the end of each year for the next three years, growing at 10% per year, is worth $ now, if t = $2.00 and the appropriate discount rate is 5%. (Hint: there are three payments and the first is $2.20)