Suppose that you can earn 5 , compounded annually, on an investment What will the total value at the end of year 3 If you invested $1000 at the end of the current year (year 1) and $2000 at the end of the next year No withdrawal is made before the end of year 3 If you invest $1000 at the beginning of the current year (year 1) and $2000 at the beginning of the next year No withdrawal is made before the end of year 3 2 Your firm promises you a one time pension payment of $1,000,000 in 3 years from now Suppose you are already vested and you wish to retireand receive your pension now, what is the value today of your pension, if the interest rate is 5 percent

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Question: Suppose that you can earn 5%, compounded annually, on an investment. What will the total value at the end of year 3: If you invested

Suppose that you can earn 5%, compounded annually, on an investment. What will the total value at the end of year 3:

If you invested $1000 at the end of the current year (year 1) and $2000 at the end of the next year? No withdrawal is made before the end of year 3.
If you invest $1000 at the beginning of the current year (year 1) and $2000 at the beginning of the next year? No withdrawal is made before the end of year 3.

2.Your firm promises you a one-time pension payment of $1,000,000 in 3 years from now. Suppose you are already vested and you wish to retireand receive your pension now, what is the value today of your pension, if the interest rate is 5 percent?

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