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

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