Your finance text book sold 54,000 copies in its first year. The publishing company

1) Your finance text book sold 54,000 copies in its first year. The publishing company

expects the sales to grow at a rate of 19.0 percent for the next three years, and by

5.0 percent in the fourth year. Calculate the total number of copies that the

publisher expects to sell in year 3 and 4.

2)

Find the present value of $5,000 under each of the following rates and periods.

(If you solve this problem with algebra round intermediate calculations to 6

decimal places, in all cases round your final answer to the nearest penny.)

a.

8.9 percent compounded monthly for five years.

Present value $

b.

6.6 percent compounded quarterly for eight years.

Present value $

c.

4.3 percent compounded daily for four years.

Present value $

d.

5.7 percent compounded continuously for three years.

Present value