CHAPTER5 Note that the Time Value of Money App and web page are the easiest way to perform the calculations! It may seem like a lot of problems, but they can be answered quickly. To show your work, state what you use as inputs and what you used to calculate the answer (App, Excel, formulas, etc.) P5-1 Compounding with Different Interest Rates A deposit of $350 earns the following interest rates: .8 percent in the first year, .6 percent in the second year, and .5.5 percent in the third year. What would be the third year future value? P5-2 Present Value with Different Discount Rates Compute the present value of $1,000 paid in three years using the following discount rates; 6 percent in the first year, 7 percent in the second year, and 8 percent in the third year