You expect to receive $1,000 at the end of each of the next 3 years. You will deposit these payments into an accountthat pays 8 percent compounded annually. What is the future value of these payments, that is, the value at the end ofthe third year?

Future value refers to the value of the current asset at some future date affected by interest and…

Answered: You expect to receive $1,000 at the end…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You expect to receive $1,000 at the end of each of the next 3 years. You will deposit these payments into an account that pays 8 percent compounded annually. What is the future value of these payments, that is, the value at the end of the third year?