Simple TMV question next, beginning, question, interest

optiix

First off thanks for the feedback.
In the Schweser book of 2009, theres a Concept Checker that I got the right answer but don’t want to believe it’s right.
If $1,000 is invested today and $1,000 is invested at the beginning of each of the next three years at 12% interest (compounded annually), the amount an investor will have at the end of the fourth year will be closest to:
A. $4,779
B. $5,353
C. $6,792.
Did anyone else get an answer that is not any of the three. I’m going to let this post saturate for a day before posting my reason. The end of the fourth year might have been misinterpreted by me, but I want to hear your advice.

redskins44

Solve it as a regular annuity and then convert it into annuities due
So at end of Y1, Y2, Y3 and Y4 if you put 1000$, the FV = 4779
But 1000 is put in at t=0 instead of t=4
So FV = 4779 * 1.12 = 5353
why is it complicated?

DarienHacker

bah. I second guessed myself like 10 times because it was end of 4th year and i thought the third cash flow happened at the beginning of third year. thats what i wanted to hear though. thank you very much.