4.2 - Present Values, Future Values and the Discount Rate 1) What is the future value of $100 invested at 10% simple interest for 1 year? 2) True or False? If you feel that the value of $107 in one year is just as good as $100 now. the $100 is the Present Value (PV) of the $107 to be received in one year. 4.3 - Compound and Simple Interest 1) What is the future value of $100 invested at 10% compounded annually for 3 years? Enter the answer in dollar format without $ sign or thousands comma -> 3519.23 and not $3,519.23 or 3,519.23 2) True or False? You should never compare cash flows occurring at different times without first discounting them to a common date. 3) True or False? The advantage to savers and investors of receiving compound interest rather than simple interest is that future values are larger because interest is earned on accumulated interest payments. Also, the difference in future values becomes smaller as time goes by.