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:

Nonparametric

Nonparametric refers to statistical methods that do not assume a specific distribution pattern for the data, making them suitable for data that does not fit normal distribution assumptions.

Distributions

Refers to the way values are spread over a range for a dataset or variable in statistics.

Magnitude and Direction

Magnitude and direction describe the strength and the pathway (positive or negative) of a relationship or effect observed within a dataset.

Mann-Whitney U

A nonparametric test that compares differences between two independent groups on a single, continuous variable.