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For the following mixed stream of cash flows, determine the future value at the end of Year 3. Assume annual interest of 15%

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Answer #1

We need to you this formula for each cash flow,

FV = 18,000 * (1 + 0.15)^3 + 8,900 * (1 + 0.15)^2 + 7,300 * (1 + 0.15)^1

FV = $27,375.75 + $11,70.25 + $8,395

FV = $47,541.0

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