***PLEASE SHOW IN EXCEL**** 2. Jane Swan will receive from his investment cash flows of $4,450,...
***PLEASE SHOW IN EXCEL****
| 2. Jane Swan will receive from his investment cash flows of $4,450, $4,775, and $5,125. If she 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.) |
| A. $15,329 |
| B. $15,427 |
| C. $16,427 |
| D. $14,427 |
| E. None of the answers is correct |
Homework Answers
Future value of investments = Cash flows * ((1+i)^n)
Here,
i (interest) = 7% or 0.07
n = years
Now,
Future value of investments = $4,450 * ((1 + 0.07)^1) + $4,775 * ((1 + 0.07)^2) + $5,125 * ((1 + 0.07)^3)
Future value of investments = ($4,450 * 1.07) + ($4,775 * 1.1449) + ($5,125 * 1.2250)
Future value of investments = $4,761.50 + $5,466.90 + $6,278.13
Future value of investments = $16,506.53 or $16,507
Answer : E : None of the answers is correct.
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***PLEASE SHOW IN EXCEL****
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