Question

At the end of year three, what is the future value of $1,000 to be received at the end of year one, $2,000 to be received at the end of year two, and $4,500 to be received at the end of year three assuming an interest rate of 6%?

Answer 1

Receive year

1180 year 1

2360 year 2

5310 year 3

Explanation:

i=C*i*t

Interest capital Receive year

i=1000*0,06*3 180 1000 1180 Year 1

i=2000*0,06*3 360 2000 2360 Year 2

i=4500*0,06*3 810 4500 5310 Year 3