Compounded value and compounded rate. a. What would be the compounded value of one dollar in three years if the annual interest rate is 3 percent in Year 1 and is expected to rise to 5 percent in Year 2 and 6 percent in Year 3? b. What constant annual interest rate would produce the same compounded value over three years? Alternative financing plans. make You can purchase a car with one of the following two financing plans. You a down payment of $12,000 and 36 monthly payments of starting immediately. Alternatively, you can make 60 monthly payments of $492 starting next month without any down payment. Which plan offers a better deal if the interest rate is 6 percent? Compounded value and compounded rate. a. What would be the compounded value of one dollar in three years if the annual interest rate is 3 percent in Year 1 and is expected to rise to 5 percent in Year 2 and 6 percent in Year 3? b. What constant annual interest rate would produce the same compounded value over three years? Alternative financing plans. make You can purchase a car with one of the following two financing plans. You a down payment of $12,000 and 36 monthly payments of starting immediately. Alternatively, you can make 60 monthly payments of $492 starting next month without any down payment. Which plan offers a better deal if the interest rate is 6 percent