Question 3 (Total marks=7) (a) Calculate the present value of an annuity due consisting of three cash flows of $1,000 each, each one year apart. Use a 6% compounded interest rate per year. (3.5 marks) (b) Calculate the future value at the end of the third period of an annuity due consisting of three cash flows of $1,000 each, each one year apart. Use a 6% compounded interest rate per year. (3.5 marks)