Consider the following timeline: If the current market rate of interest is 7%,then the future value of this timeline as of year 3 is closest to:
A) $2,100
B) $2,013
C) $1,720
D) $1,893

Name: Consider the following timeline: If the current market rate of interest is 7%,then the future value of this timeline as of year 3 is closest to: A) $2,100 B) $2,013 C) $1,720 D) $1,893
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Question

Consider the following timeline:  If the current market rate of interest is 7%,then the future value of this timeline as of year 3 is closest to:
A) $2,100 
B) $2,013 
C) $1,720 
D) $1,893

Quizplus · Accepted Answer

C) FV = PV(1 + r)ⁿ FV = 500(1.07)³ + 500(1.07)² + 500(1.07)¹ = $1,719.97 or approximately $1,720

Consider the Following Timeline: If the Current Market Rate