alleryStart learning →An inflow of 1,000 at year 1 is reinvested at 10% until year 3. Value then?
A1,331
B1,300
C1,210
D1,100
Answer & Solution
Correct answer: C. 1,210
It compounds for two years: 1,000 x 1.1 x 1.1 = 1,210.
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