You plan to deposit $900 in a bank account now and $100 at the end of one year. If
the account earns 5% interest per year, what will the balance be in the account
right after you make the second deposit?
You have just received a windfall from an investment you made in a friend’s
business. She will be paying you $60,000 at the end of this year, $120,000 at the
end of next year, and $180,000 at the end of the year after that (three years from
today). The interest rate is 16.0% per year.
What is the present value of your windfall
What is the future value of your windfall in three years (on the date of the