Consider the following timeline detailing a stream of cash flows:
If the current market rate of interest is 8%,then the future value of this stream of cash flows is closest to:
A)$11,699
B)$10,832
C)$12,635
D)$10,339

Question

Consider the following timeline detailing a stream of cash flows: 
If the current market rate of interest is 8%,then the future value of this stream of cash flows is closest to:
A)$11,699 
B)$10,832 
C)$12,635 
D)$10,339

Quizplus · Accepted Answer

A)FV = 1000(1.08)⁴ + 2000(1.08)³ + 3000(1.08)² + 4000(1.08)¹ = $11,699

Consider the Following Timeline Detailing a Stream of Cash Flows