Which of the following statements is (are) correct?
I. At 6% interest, the present value of $400 for the first year, $600 for the second year, and $800 for the third year is $1,603.
II. The future value of the following mixed cash flow stream (if it is from an annuity due at 6% interest) $400 for the first year, $600 for the second year, and $800 for the third year is $1,999 (rounded).
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Question

Which of the following statements is (are) correct? 
I. At 6% interest, the present value of $400 for the first year, $600 for the second year, and $800 for the third year is $1,603.
II.  The future value of the following mixed cash flow stream (if it is from an annuity due at 6% interest) $400 for the first year, $600 for the second year, and $800 for the third year is $1,999 (rounded).
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Quizplus · Accepted Answer

The Answer of Which of the following statements is (are) correct? 
I. At 6% interest, the present value of $400 for the first year, $600 for the second year, and $800 for the third year is $1,603.
II.  The future value of the following mixed cash flow stream (if it is from an annuity due at 6% interest) $400 for the first year, $600 for the second year, and $800 for the third year is $1,999 (rounded).
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Which of the Following Statements Is (Are) Correct