$100 Is Received at the Beginning of Year 1,$200 Is

question 53

Multiple Choice

$100 is received at the beginning of year 1,$200 is received at the beginning of year 3.If these cash flows are deposited at 12 percent,their combined future value at the end of year three is: (Round to the nearest whole dollar)

• A) $672
• B) $536
• C) $427
• D) $364
• E) $489

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Definitions:

Time Instrument

A financial document that specifies payment to be made at a future date.

Payee

The individual or entity to whom a payment is to be made.

Drawee

A drawee is the party in a transaction, usually a bank, upon whom a check or draft is drawn and is responsible for paying the specified amount.

Time-certain Requirement

A provision in a contract or agreement that specifies a precise time by which an obligation must be fulfilled.