Review: The connection between Future Value (FV) and Present Value (PV) PV *(1 + r)t = FV FV 1 PV FV * (1 + r) (1 + r)t Where: r ---- interest rate t ---- number of periods Question 3: (1) If you invest $250 for 5 years into Fund K which offers you an interest rate at 10% per year. At the end of this investment, how much will you get from this investment? (i.e. Calculate the FV of your investment.) (2) If you will get $120 at the end of your 2-year investment in Fund F. Fund F offers you 25% per year. How much do you need to invest today for this investment? (i.e. What is the PV of this investment?)