Calculate the value today for the investment

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You expect to receive $1,000 a year from today which you plan to deposit into a tax-free savings account.

a. If interest rates are 8 percent per year, what is the value of your planned investment today?

b. if the interest rate is 8 percent compounded semi-annually, calculate the value today for the investment in part a.

c. Rather than waiting one year to deposit the $1,000, you decide to deposit $250 every 3 month with your first deposit occurring 3 months from now. If interest rates are 8 percent compounded quarterly, what is the value today of these quarterly deposits?

Reference no: EM132783044

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