• Write out each step you used to solve the problem you were assigned, and provide the solution to the problem as well.
  • Present your final solution as a decimal approximation carried out to the second decimal point (e.g., $000.00).
• Explain the meaning of the problem and your solution in your own words.
• Explain your answers to the following questions:
  • If the rate in the problem was higher, would the solution be higher or lower?
  • If the time period in the problem was shorter, would the solution be higher or lower?
• Describe an element of this problem that was challenging to you.
• Ask at least one question about time value of money mathematics.

Compute the future value of \begin{tabular}{l|l} $1,000, at an interest rate of & Equation 4.11 \\ 3%, compounded annually, in & FVn=PV0(1+r)n \\ 4 years. \end{tabular}