Suppose you locate a two-year investment that pays 15 percent per year. If you invest $325, how much will you have at the end of the two years? FV = PV(1 + i)" Suppose you need $400 to buy Xbox next year. You can earn 7 percent on your money. How much do you have to put up today? PV = FV(1/(1+i)n) Consider a sport agent who has two potential sponsors for her client. Sponsor A is willing to pay the athlete $10,000 each year for five years, with a discount rate of 5%. Sponsor B is ready to pay the athlete $12,000 each year for five years, with a discount rate of 10%. Which is the better option? You need to calculate Sponsor A and B