An investment will pay $100 at the end of each of the next 3 years, $250 at the end of Year 4, $400 at the end of Year 5, and $500 at the end of Year 6.A) If other investments of equal risk earn 6% annually, what is its present value? Round your answer to the nearest cent.B) If other investments of equal risk earn 6% annually, what is its future value? Round your answer to the nearest cent.

[tex]Present \ value = \frac{C1}{(1+R)^1} +\frac{C1}{(1+R)^2}+ \frac{C1}{(1+R)^3} +\frac{C2}{(1+R)^4} +\frac{C3}{(1+R)^5}+ \frac{C4}{(1+R)^6} \\Present \ value = \frac{100}{(1+0.06)^1} +\frac{100}{(1+0.06)^2}+ \frac{100}{(1+0.06)^3} +\frac{250}{(1+0.06)^4} +\frac{400}{(1+0.06)^5}+ \frac{500}{(1+0.06)^6}[/tex]

[tex]Present \ value = \frac{100}{(1.06)^1} +\frac{100}{(1.06)^2}+ \frac{100}{(1.06)^3} +\frac{250}{(1.06)^4} +\frac{400}{(1.06)^5}+ \frac{500}{(1.06)^6} \\Present \ value = \frac{100}{(1.06)} +\frac{100}{(1.1236)}+ \frac{100}{(1.191)} +\frac{250}{(1.2624)} +\frac{400}{(1.3382)}+ \frac{500}{(1.4185)} \\Present \ value =94.39+88.99+83.96+198.03+298.90+352.48\\ =1116.75[/tex]

Present value = $1,116.75 = $1,117

Future Value:

[tex]Future Value =PV (1+r)^n\\= 1,117(1+0.06)^6\\= 1,117(1.06)^6\\=1,117(1.4185)\\=1,584.50[/tex]

Future value = $1,585