You invest $2000$$ in the bank which pays interest at an annual rate of $6\%$ How much will you have at the end of the fourth year if the bank pays interest at the end of each year? How much will you have at the end of the third year if the bank pays interest semi$-$annualy What is the effective interest rate in the second case?

Exercise $1.(1$ pt$)$ What is the present value of $2000$$ which will be given in $7$ years if the investment rate is $5\%?$