What is the future value of the following cash flows in year 5 with an interest rate of 6%? $$\begin{array} { | c | c | }
\hline \text { Year } & \text { Cash Flow } \
\hline 1 & \$ 200 \
\hline 2 & \$ 400 \
\hline 3 & \$ 600 \
\hline 4 & \$ 800 \
\hline 5 & \$ 1000 \
\hline
\end{array}$$
A)$3,251.06
B)$3,446.13
C)$3,067.04
D)$3,000.00
E)$3,180.00

Question

What is the future value of the following cash flows in year 5 with an interest rate of 6%? $$\begin{array} { | c | c | } 
\hline \text { Year } & \text { Cash Flow } \
\hline 1 & \$ 200 \
\hline 2 & \$ 400 \
\hline 3 & \$ 600 \
\hline 4 & \$ 800 \
\hline 5 & \$ 1000 \
\hline
\end{array}$$
A)$3,251.06
B)$3,446.13
C)$3,067.04
D)$3,000.00
E)$3,180.00

Quizplus · Accepted Answer

The future value of the cash flows in year 5 with an interest rate of 6% is $3,251.06. This is calculated using the formula:FV = PV * (1 + r)^nwhere:FV is the future valuePV is the present valuer is the interest raten is the number of yearsIn this case, the present value of the cash flows is $200 + $400 + $600 + $800 + $1000 = $3,000. The interest rate is 6% and the number of years is 5. Plugging these values into the formula, we get:FV = $3,000 * (1 + 0.06)^5FV = $3,000 * 1.3382256FV = $3,251.06

What Is the Future Value of the Following Cash Flows