What Is the Value in Year 6 of a $1,000

question 76

Multiple Choice

What is the value in year 6 of a $1,000 cash flow made in year 2 if interest rates are 5 percent in years 3 and 4, and increase to 6 percent in the remaining years?

• A) $1,215.51
• B) $1,238.77
• C) $2,970.03
• D) $2,982.74