An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value its future value

The present value of each payment is found by discounting at 8% for the years until it is due. To discount divide they payment amount by (1 + the interest rate) raised to the power of the number of years. To get the total present value sum the present values of each payment. For the first year divide $100 by 1.08^1, second-year divide $100 by 1.08^2, etc until 6th year divide $500 by 1.08^6, then sum each of those amounts.

The payments total $1300, but the present value is less than $1000. Go ahead, calculate it to the penny. You can do this. Show your work.