You will receive $5,000 three years from now. The discount rate is 12 percent.

a.	What is the value of your investment two years from now? Multiply $5,000 .893 (one years discount rate at 12 percent). (Round your answer to 2 decimal places.)

Value of investment

$

b.	What is the value of your investment one year from now? Multiply your rounded answer to part a by .893 (one years discount rate at 12 percent). (Round your answer to 2 decimal places.)

Value of investment

$

c.	What is the value of your investment today? Multiply your rounded answer to part b by .893 (one years discount rate at 12 percent). (Round your answer to 2 decimal places.)

Value of investment

$

d.

Confirm that your answer to part c is correct by going to the link provided below (present value of $1) for n = 3 and i = 12%. Multiply this tabular value by $5,000 and compare your answer to part c. There may be a slight difference due to rounding. Use Appendix B. (Round your answer to 2 decimal places.)

Present value

$

e.	Now compute the present value of $5,000 for 3 years at 12 percent using the formula and financial calculator methods. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value

$