what is the future value of this cash flow at 3%​, 11%​, and 18​% interest rates at the end of year​ 7

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Year Cash Inflow
1 14,000
2 19,000
3 31,000
4 0
5 0
6 0
7 130,000

what is the future value of this cash flow at

3%​,
11%​,

and

18​%

interest rates at the end of year​ 7

Expert Solution
Step 1

Future value refers to the future value of a current asset based on a certain rate of interest.

It is important for every investor to know what will be the future worth of an asset if it is invested at a certain rate of interest. This enables the investor to make a sound investment decision based on his needs.

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