You Are Considering an Investment That Is Expected to Pay

question 49

Multiple Choice

You are considering an investment that is expected to pay 3 percent in year 1, 5 percent in years 2 and 3 and 7 percent in year 4. If you invest $1,000 today, what will this investment be worth at the end of the fourth year?

• A) $1215.07
• B) $1215.51
• C) $1275.81
• D) $1285.75

---

Definitions:

Tension

A state of mental or emotional strain, often resulting from demanding circumstances or the anticipation of such.

Anxiety

A feeling of worry, nervousness, or unease typically about an imminent event or something with an uncertain outcome.

Vitamin B12

An essential vitamin involved in the production of red blood cells and maintenance of the nervous system.

Smoking Bans

Regulations or policies prohibiting smoking in certain areas to protect public health.