You expect to receive $1,000 a year from today which you plan to deposit into a tax-free savings account.

a. If interest rates are 8 percent per year, what is the value of your planned investment today? Show your work!

b. If the interest rate is 8 percent compounded semi-annually, calculate the value today for the investment in part a. Show your work!

c. Rather than waiting one year to deposit the $1,000, you decide to deposit $250 every 3 monthwith your first deposit occurring 3 months from now. If interest rates are 8 percent compounded quarterly, what is the value today of these quarterly deposits? Show your work!