Suppose you receive $$200$ at the end of each year for the next three years.

a$.$ If the interest rate is $7\%,$ what is the present value of these cash flows?

b$.$ What is the future value in three years of the present value you computed in $($a$)?$

c$.$ Suppose you deposit the cash flows in a bank account that pays $7\%$ interest per year. What is the balance in the account at the end of each of the next three years $($after

your deposit is made$)?$ How does the final bank balance compare with your answer in $($b$)?$

a$.$ The present value of the cash flow is $

$($Round to the nearest cent.$)$

b$.$ The future value of the cash flow is $ L

$($Round to the nearest cent.$)$

c$.$ The balance of the account after the end of year $1$ is $

$.$

The balance of the account after the end of year $2$ is $

$.$

The balance of the account after the end of year $3$ is $

$.$

$($Round to the nearest cent.$)$

The answers to parts $($b$)$ and $($c$)$ are

the same.