$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) $336

Question

Quizplus · Accepted Answer

Step 1 - Calculate the future value of each cash flow.
FV = PV × 11ea7fdb_fc25_008f_a768_b978517963ba_TB2902_00 11ea7fdb_fc25_0090_a768_25948cc030cd_TB2902_00 = 100 × 11ea7fdb_fc25_0091_a768_e9fec1437c32_TB2902_00 = 140.49 11ea7fdb_fc25_0092_a768_49901a13a360_TB2902_00 = 200 × 11ea7fdb_fc25_0093_a768_9f3886fb0922_TB2902_00 = 224
Step 2 - Add the values together.
140.49 + 224 = 364.49 or $364

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