### Present Value of a Lump Sum

P3-21. You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a stated interest rate of 8 percent, which is expected to apply to all future years. a. How much will you have in the account at the end of 10 years if interest is compounded as follows? (1) Annually (2) Semiannually (3) Daily (assume