Question

Consider the following timeline detailing a stream of cash flows: Date 0 2 3 4 $1000 $2000 $3000 $4000 ? Cash flow If the current market rate of interest is 9%, then the future value (FV) of this stream of cash flows is closest to OA. $19,082 OC. $5,963 B. $11,926 OD. $14,311please choose one answer

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Answer #1

Future value = Amount (1+r)^n

Total Future value = [$1000(1.09)^4] + [$2000(1.09)^3] + [$3000(1.09)^2] + [$4000(1.09)]

Total Future value = [$1411.58 + $2590.05 + $3564.3 + $4360]

Total Future value = $11925.93

So the answer is Option B.

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