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Question 3 (10 points) You had an investment that will pay you $7,000 today, $4,000 in year 2 and $3,000 in year 5, $6,000 in
Question 3 (10 points) You had an investment that will pay you $7,000 today, $4,000 in year 2 and $3,000 in year 5, $6,000 in year 8, and $10,000 in year 10. If the return is 6% per year compounded annually, how much does all these cash flows worth in year 5? (Write the equation only) Question 2 (10 points) Suppose you have just celebrated your 21st birthday. A rich uncle has set up a trust fund for you that will pay you $200,000 when you turn 25. If the relevant interest rate is 6% per year compounded monthly, how much does this fund worth today
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