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An investor pays 100000 today for a 4-year investment that returns cash flows of 60,000 at the end of each of year 3 and 4.

An investor pays 100000 today for a 4-year investment that returns cash flows of 60,000 at the end of each of year 3 and 4. The cash flow can be reinvested at 4% per annum effective. Calculate the accumulated value at the end of year 4.

Choose one correct answer below:

a. 127296

b. 120000

c. 124896

d. 122400

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