You plan to make a series of deposits in an interest bearing account. You will deposit $ 1,000 today, $ 2,000 at the end of year 2 and $ 8,000 at the end of year 5. If you withdraw $ 3,000 at the end of 3 and $ 5,000 at the end of year 7.

(a) How much will you have after eight years if the interest rate is 9 percent?

(b) What is the present value of this cash flow?