Question

At a rate of 10.5%, what is the future value of the following cash flow stream?...

At a rate of 10.5%, what is the future value of the following cash flow stream? ch04_130.jpg

Select the correct answer.

a. $675.92
b. $693.52
c. $689.12
d. $684.72
e. $680.32
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Answer #1

Future value = Present value*(1+rate) Time period 0 Time period 2 225 1 75 3 Cash flows 300 Future value 75*(1+0.105)^3 + 225

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