# (SOLVED) If $1,000 is invested today and $1,000 is invested at the beginning of each of the next three years at 12% interest

**Discipline:** Finance

**Type of Paper:** Question-Answer

**Academic Level:** Undergrad. (yrs 1-2)

**Paper Format:** APA

**Pages:**1

**Words:**172

Question

**FINANCIAL MATHEMATICS**

**1.
**

**If $1,000 is invested today and $1,000 is invested at the beginning of
each of the next three years at 12% interest (compounded annually), the
amount an investor will have at the end of the fourth year will be
closest to?**

**2.
**

** If $10,000 is invested today in an account that earns interest at a
rate of j2 is 9%, what is the value of the equal annual withdrawals that
can be taken out of the account at the end of each of the next five
years if the investor plans to deplete the account at the end of the
time period?**

**3. **

5.5% coupon, paid semi-annually will mature on April 15, 2026. If the bond price is 102, what is the current yield?

**Expert Solution Preview**

1) | Future Value | $ 5,353 | | | | | | |

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Working: | | | | | | | | |

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# 1 | | | | | | | | |

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Future Value of 1 : | | | | | | | | |

0 | = | 1.12^4 | = | 1.5735 | | | | |

1 | = | 1.12^3 | = | 1.4049 | | | | |

2 | = | 1.12^2 | = | 1.2544 | | | | |

3 | = | 1.12^1 | = | 1.1200 | | | | |

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# 2:Future Value of Cash Flow: |
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