What Is the Future Value at the End of Year

question 250

Multiple Choice

What is the future value at the end of year 4 of the following set of cash flows? Assume an interest rate of 8%.

• A) $50.00
• B) $127.38
• C) $173.31
• D) $379.41
• E) $3,312.13

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Definitions:

Positive Externalities

Benefits that are enjoyed by a third-party or the society at large as a result of an economic activity.

Logrolling

The practice of exchanging favors, especially in politics by reciprocal voting for each other's proposed legislation.

Paradox Of Voting

A situation where individual rationality in voting may lead to outcomes that are not collectively optimal, such as the failure to elect the most preferred candidate due to vote splitting.

Median Voter Model

A theoretical model in political science that suggests policies will converge towards the preferences of the median voter in a majority rule voting system.