Consider the following cash flows.

0 1 2 3 4 5 6 7

|---------|---------|---------|---------|---------|---------|---------|

1,000 1,000 1,000 1,000 1,000

Based on the above cash flows, you have just entered the following information into your calculator. (Note, your calculator is set in the beg mode)

PMT = $1,000

N = 5

I = 10

FV = ?

From this calculation you get an answer of $6,715.61. $6,715.61 represents the value of these payments at which point on the time line presented above?

• A.

  0

• B.

  1

• C.

  2

• D.

  3

• E.

  4

• F.

  5

• G.

  6