Problem:
An investment will pay $150 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 $600 at the end of Year 6.
Required:
Question 1: If other investments of equal risk earn 12% annually, what is its present value?
Question 2: If other investments of equal risk earn 12% annually, what is its future value?
Note: Please explain comprehensively and give step by step solution.