What Is the Future Value of the Following Cash Flows

question 121

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.

• 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:

Labor Market

A marketplace where wages are determined, and workers are hired and fired.

Consumer Surplus

The difference in the total cost consumers are prepared and financially able to cover for a good or service, against the total cost they actually cover.

Minimum Price

The lowest possible price at which a product or service can be sold, often set by government regulations to protect producers or consumers.

Market Equilibrium

A situation in which the supply of an item is exactly equal to its demand, leading to a stable market price.