At a rate of 6.5%, what is the future value of the following cash flow stream?
A) $526.01
B) $553.69
C) $582.83
D) $613.51
E) $645.80

Question

Quizplus · Accepted Answer

I/YR = 6.5%
 $\begin{array}{llllll}
&0 & 1 & 2 & 3 & 4 \
\hline  \text {CFs: }& \$ 0 & \$ 75 & \$ 225 & \$ 0 & \$ 300 \
 \text { FV of CFs: } &\$ 0 & \$ 91 & \$ 255 & \$ 0 & \$ 300
\end{array}$ 
 $\begin{array}{lllll}
F V=\$ 645.80&\text { Found by summing individual  FVs }  \
F V=\$ 645.80&\text { Found with the NFV key in some calculators.} \
F V=\$ 645.80&\text { Found with a calculator by first finding the PV of the stream, then finding the FV of that PV.}  \
\
 \text { PV of the stream: } &\$ 501.99  \
 \text { FV of the PV: } &\$ 645.80
\end{array}$

At a Rate of 6