P9-2 2. Find the future value of $10000 invested now after five years if t

P9-2

2. Find the future value of $10000 invested now after five years if the

annual interest rate is 8 percent.

a. What would be the future value if the interest rate is a simple

interest rate?

b. What would be the future value if the interest rate is a

compound interest rate?

P9-5

5. Find the present value of $7000 to be received one year from now

assuming a 3 percent annual discount interest rate. Also calculate

the present value if the $7000 is received after two years.

P9-10

10. Determine the present value now of an investment of $3000

made one year from now and an additional $3000 made two years

from now if the annual discount rate is 4 perce