You have just purchased an investment that generates the following cash flows for the next four years

Finance Oct 10, 2020

You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 3.3 percent , compounded annually.

End of year

1: $402

2: $3,985

3: $883

4: $1,252

What is the percent value of this investment tif 3.3 percent per year is the appropriate discount rate? Round the answer two decimal places.

Expert Solution

Present value = $6,024.19

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