Example$-3$

Invest $$2,000$ now, receive $3$ yearly payments of $$100$ each, plus $$2,500$ in the $3$ rd year. Use $10\%$ Interest Rate.

Example$-4$

You have an investment opportunity that will pay $$1,000$ per year for the next three years. The initial cost of the investment is $$2,700,$ and a comparable interest rate is $3\mathrm{.}5$ percent. Should you make the investment?