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

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

Quizplus · Accepted Answer

I/YR = 6.5%
 $\begin{array}{lccccc} 
& \mathrm{U} & 1 & 2 & 3 & 4 \
\text { CFs: } & \$ 0 & \$ 75 & \$ 225 & \$ 0 & \$ 300 \
\text { FV of CFs } & \$ 0 & \$ 91 & \$ 255 & \$ 0 & \$ 300
\end{array}$
 $\begin{array}{ll}
F V=\$ 645.80 & \text { Found by summing individual FVs. } \
F V=\$ 645.80 & \text { Found with the NFV key in some calculators. } \
F V=\$ 645.80 & \text { Found with a calculator by first finding the PV of the stream, ther } \
& \text { finding the FV of that PV. }
\end{array}$
PV of the stream:&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp$ \$ 501.99 $
FV of the PV.&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp$ \$ 64580 $

At a Rate of 6