3. Future and present values Suppose a wealthy university booster has pledged a superstar high-school sophomore tennis recruit $1,000 as a gift the day they give a verbal commitment to play tennis at the booster's alma mater. Assuming a constant interest rate of 6%, consider the present and future values of this gift, depending on when the recruit announces their commitment. Complete the first row of the following table by determining the value of the gift in one and two years with interest if you become engaged today and save the money. Present Value Value in One Year Value in Two Years Date Received (Dollars) (Dollars) (Dollars) Today 1,000.00 In 1 year 1,000.00 In 2 years 1,000.00 Now complete the first column of the previous table by computing the present value of the gift if the recruit commits in one year or two years. The present value of the gift is V if the recruit commits in two years than it is if you get engaged in one year.4. Calculating present value If the interest rate is 7% per year, the present value of a $1,000 gift that you will receive one year from today {rounded to the nearest dollar} is v Again, if the interest rate is ?% per year, the present value of a $1,000 gift that arrives two years from today {rounded to the nearest dollar) is v Now the interest rate is 6% per year, the present value of a $1,000 gift that arrives (again) two years from today {rounded to the nearest dollar} is V