PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM

An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $550 at the end of Year 6.

1. If other investments of equal risk earn 4% annually, what is its present value? Round your answer to the nearest cent.

   $

2. If other investments of equal risk earn 4% annually, what is its future value? Round your answer to the nearest cent.

   $