What is the future value of the following cash flows at the end of year 3 if the interest rate is 9%? The cash flows occur at the end of each year. $$\frac { \text { Year } 1 } { \$ 9,820 } \quad \frac { \text { Year } 2 } { \$ 0} \quad \frac { \text { Year } 3 } { \$ 4,510 }$$

Question

Quizplus · Accepted Answer

To calculate the future value, we need to use the formula:
$FV = \frac{CF_1}{(1+i)^1} + \frac{CF_2}{(1+i)^2} + \frac{CF_3}{(1+i)^3}$, where $CF$ represents the cash flow and $i$ represents the interest rate.
Plugging in the numbers we get:
$FV = \frac{9,820}{(1+0.09)^1} + \frac{0}{(1+0.09)^2} + \frac{4,510}{(1+0.09)^3} = \$ 16,177.14$
Therefore, the answer is D.

What Is the Future Value of the Following Cash Flows Year 1$9,820 Year 2$0 Year 3$4,510\frac { \text { Year } 1 } { \$ 9,820 } \quad \frac { \text { Year } 2 } { \$ 0} \quad \frac { \text { Year } 3 } { \$ 4,510 }$9,820 Year 1​$0 Year 2​$4,510 Year 3​

What Is the Future Value of the Following Cash Flows $\frac { \text { Year } 1 } { \$ 9,820 } \quad \frac { \text { Year } 2 } { \$ 0} \quad \frac { \text { Year } 3 } { \$ 4,510 }$