Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
Given the following cash flows, what is the
Year |
1 |
2 |
3 |
Cash Flow |
$400 |
$650 |
$900 |
a. |
$2,053.46 |
|
b. |
$1,676.24 |
|
c. |
$2,023.50 |
|
d. |
$1,798.70 |
Expert Solution
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Step 1
Future value is the value of a sum of money at a future point in time for a given interest rate. It is calculated as:
Future value = Present value(1 + Rate)^Time
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