What Is the Future Value of the Following Cash Flows

question 80

Multiple Choice

What is the future value of the following cash flows at the end of year 3 if the interest rate is 6% ? The cash flows occur at the end of each year. $\begin{array} { | l | l | l | } \hline \text { Year } 1 & \text { Year } 2 & \text { Year } 3 \\\hline £ 5,180 & £ 9,600 & £ 2,250 \\\hline\end{array}$

• A)£15,916.78
• B)£18,109.08
• C)£18,246.25
• D)£19,341.02
• E)£19,608.07

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Definitions:

Real Line

A linear continuum of points representing real numbers, effectively illustrating the concept of the infinite nature of real numbers on a one-dimensional scale.

Inequality

A mathematical expression that shows the relationship between two values that are not equal, using symbols such as <, >, ≤, or ≥.

Real Line

A one-dimensional continuum that includes all real numbers, each of which corresponds to a unique point on the line.

Inequality

An inequality is a mathematical statement indicating that two quantities are not equal, represented by symbols such as >, <, ≤, or ≥.