Ask Question
12 October, 19:40

Robert White will receive from his investment cash flows of $4,450, $4,775, and $5,125. 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

+1
Answers (1)
  1. 12 October, 19:57
    0
    Total future value = $16,402.09

    Explanation:

    Giving the following information:

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

    To calculate the future value, we need to use the following formula for each cash flow:

    FV = PV * (1+i) ^n

    Year 1 = 4,450*1.07^3 = 5,451.44

    Year 2 = 4,775*1.07^2 = 5,466.90

    Year 3 = 5,125*1.07 = 5,483.75

    Total future value = $16,402.09
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Robert White will receive from his investment cash flows of $4,450, $4,775, and $5,125. If he can earn 7 percent on any investment that he ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers