You Are Considering an Investment That Is Expected to Pay

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