Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 8%,then the future value of this stream of cash flows is closest to:
A) $11,699
B) $10,832
C) $12,635
D) $10,339

Question

Consider the following timeline detailing a stream of cash flows:  If the current market rate of interest is 8%,then the future value of this stream of cash flows is closest to:
A) $11,699 
B) $10,832 
C) $12,635 
D) $10,339

Quizplus · Accepted Answer

A) FV = 1,000(1.08)⁴ + 2,000(1.08)³ + 3,000(1.08)² + 4,000(1.08)¹ = $11,699

Consider the Following Timeline Detailing a Stream of Cash Flows