John is able reinvest these cash flows at 1201 percent


John has just purchased an investment that generates the cash flows shown below for the next four years. John is able reinvest these cash flows at 12.01 percent, compounded annually. How much is this reinvestment worth at the end of year four? Please assist.

End of year

  1. $456
  2. $994
  3. $407
  4. $230

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Finance Basics: John is able reinvest these cash flows at 1201 percent
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