Question

Robert White will receive cash flows of $4,450, $4,775, and $5,125from his investment. If he can earn 7 percent on any investment that he makes, what is the future value of his investment cash flows at the end of three years? (Round to the nearest dollar.)

Answer 1

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