Robert White will receive cash flows of $4,450, $4,775, and $5,125from his investment. If he can earn 7 percent on any investment that he makes, what is the future value of his investment cash flows at the end of three years? (Round to the nearest dollar.)

Question

Quizplus · Accepted Answer

The future value of an investment is the value of that investment at a future date, taking into account the effects of interest. To calculate the future value of Robert White's investment, we can use the following formula:FV = PV * (1 + r)^nwhere:FV is the future valuePV is the present valuer is the annual interest raten is the number of yearsIn this case, Robert White's investment has a present value of $4,450 + $4,775 + $5,125 = $14,350. The annual interest rate is 7%, and the number of years is 3. Plugging these values into the formula, we get:FV = $14,350 * (1 + 0.07)^3FV = $14,350 * 1.225043FV = $15,427Therefore, the future value of Robert White's investment cash flows at the end of three years is $15,427.

Robert White Will Receive Cash Flows of $4,450, $4,775, and $5,125from