What Is the Future Value of the Following Cash Flows

question 37

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:

Partnership Agreement

A contract between partners in a business that outlines the rights, responsibilities, and shares of each partner.

Share Transfer

The process of transferring ownership of shares from one person or entity to another in a corporation.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and profit shares of the partners in a business partnership.

Specified Period

A clearly defined duration of time.