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Question 3 (Total marks=7) (a) Calculate the present value of an annuity due consisting of three...

Question 3 (Total marks=7)
(a) Calculate the present value of an annuity due consisting of three cash flows of
$1,000 each, each one year apart. Use a 6% compounded interest rate per year.
(3.5 marks)
(b) Calculate the future value at the end of the third period of an annuity due consisting
of three cash flows of $1,000 each, each one year apart. Use a 6% compounded
interest rate per year.

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