HW 3D

Question 2

This set of problems is designed to be calculated using the Excel or financial calculator. You can also use algebraic formulas. Do not use financial tables to calculate these problems.

You have just purchased an investment that generates the cash flows shown below for the next four years. You are able reinvest these cash flows at 12.61 percent, compounded annually. How much is this investment worth at the end of year four?

End of year

1. $469
2. $1,193
3. $357
4. $262

Round the answer to two decimal places.

Your Answer: