What Is the Future Value of the Following Cash Flows

question 17

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:

Historical Records

Documents, archives, or databases that preserve past information and events, serving as evidence or reference.

Demand Frequency

The rate or interval at which a product or service is requested or required by customers.

Weekly Demand

The total quantity of a product or service that customers want to purchase over the course of a week, impacting inventory levels and production planning.

Lost Sale

A situation in which a potential sale is not realized, often due to stock unavailability, pricing issues, or the customer's decision to purchase from a competitor.