Amount investor will have at the end of fourth year

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Reference no: EM131866006

1. An investor will recieve an annuity of $4000 a year for ten years. The first payment is to be received five years from today. At a 9% discount rate, calculate the value of this annuity's worth today closest to (Hint: the answer is $18185.72)

2. If $1000 is invested today and $1000 is invested at the beginning of each of the next three years at 12% interest (compounded annually), calculate the amount an investor will have at the end of the fourth year (Hint: the answer is $5352.85)

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Reference no: EM131866006

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