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Robert White will receive from his investment cash flows of $4,450, $4,775, and $5,125. If he...

Robert White will receive from his investment cash flows of $4,450, $4,775, and $5,125. 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.)

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Answer #1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=4450*(1.07)^2+4775*(1.07)+5125

=$15329(Approx).

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