What is the value in year 15 of a $600 cash flow made in year 3 when the interest rates are 4 percent?
A) $374.76
B) $888.00
C) $960.62
D) $1,080.57

Question

Quizplus · Accepted Answer

To find the value in year 15 of a $600 cash flow made in year 3, we use the formula for future value: FV = PV * (1 + r)^n, where PV is the present value ($600), r is the interest rate (4% or 0.04), and n is the number of periods (years from 3 to 15, which is 12 years). Plugging in the values, we get FV = $600 * (1 + 0.04)^12 = $960.62.

What Is the Value in Year 15 of a $600