Consider the Following Timeline Detailing a Stream of Cash Flows

question 3

Multiple Choice

Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 6%, then the future value of this stream of cash flows is closest to:

• A) $1,723
• B) $1,500
• C) $1,626
• D) $1,288

---

Definitions:

Pleasure

Pleasure is a state of satisfaction or joy, often experienced as a result of fulfilling desires or engaging in enjoyable activities.

Psychological Egoism

The theory that suggests human beings are motivated solely by self-interest, even in what seem to be acts of altruism.

Thomas Hobbes

A 17th-century English philosopher best known for his political philosophy, including the idea that individuals consent to surrender some of their freedoms and submit to the authority of a ruler or government in exchange for protection of their remaining rights.

General Account

A summary or overview that encompasses a wide range of details or information about a specific topic or area of interest.