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# Future Value of an Investment

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You will receive \$4,000, three years from now. The discount rate is 10 percent.

a. What is the value of your investment two years from now? Multiply \$4,000 X .909 (one year's discount rate at 10 percent).

b. What is the value of your investment one year from now? Multiply your answer to part a by .909 (one year's discount rate at 10 percent).

c. What is the value of your investment today? Multiply your answer to part b by .909 (one year's discount rate at 10 percent).
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