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koban [17]
3 years ago
6

Robert White will receive cash flows of $4,450, $4,775, and $5,125from his investment. If he can earn 7 percent on any investmen

t that he makes, what is the future value of his investment cash flows at the end of three years? (Round to the nearest dollar.)
Business
1 answer:
katrin [286]3 years ago
7 0

Answer: $15,329.05

 

Explanation:

Given that,

A=P(1+\frac{r}{100})^{n}

Where,

A = future value

P = Present value

r = interest rate

n = time period

A=4,450(1+0.07)^{2}+4,775\times 1.07+5,125

         = 5,094.80 + 5,109.25 + 5,125

         = $15,329.05

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