Suppose you expect interest rates to be different in the future. Your best guess of what rates will be is: 1 year from now Interest rate forecast 2 years from 3 years from now now 7% 6% 4 years from now 5 years from 6 years from now now 8% 9% 8% 7% If your forecast of interest rates is correct, how much money will you have 7 years from now? Amount in the bank at the end of each year Year 1 2 3 Cash flow $300 $600 $680 $735 $750 $845 $915 4 5 6 7