You Are Considering an Investment That Is Expected to Pay

Multiple Choice

You are considering an investment that is expected to pay 5% in year 1, 7% in years 2 and 3 and 9% in year 4. If you invest $2,000 today, what will this investment be worth at the end of the fourth year?

A) $2,501.42
B) $2,693.71
C) $2,713.04
D) $2,620.68