Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. assuming a constant interest rate of 7%, consider the present and future values of this gift, depending on when you become engaged.

year start principal start balance interest end balance end principal 1 $1,000.00 $1,000.00 $70.37 $1,082.38 $1,012.00 2 $1,012.00 $1,082.38 $76.14 $1,170.53 $1,024.00 3 $1,024.00 $1,170.53 $82.32 $1,264.84 $1,036.00 4 $1,036.00 $1,264.84 $88.91 $1,365.76 $1,048.00 5 $1,048.00 $1,365.76 $95.97 $1,473.75 $1,060.00 6 $1,060.00 $1,473.75 $103.54 $1,589.29 $1,072.00 7 $1,072.00 $1,589.29 $111.65 $1,712.92 $1,084.00 8 $1,084.00 $1,712.92 $120.30 $1,845.21 $1,096.00 9 $1,096.00 $1,845.21 $129.54 $1,986.75 $1,108.00 10 $1,108.00 $1,986.75 $139.44 $2,138.20 $1,120.00