$100 Is Received at the Beginning of Year 1, $200

question 114

Multiple Choice

$100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is ________ .

• A) $ 727
• B) $1,536
• C) $1,245
• D) $ 672

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Definitions:

Population Standard Deviation

An indicator of the extent of variability or spread within a complete set of data points in a population.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean of the set.

Mean Purchase

The average value or amount of purchases made over a specific period of time.

Probability

The likelihood or chance of an event occurring.