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What is the future value at the end of year four of the following set of end-of-year cash flows? Assume an interest rate of 8
What is the future value at the end of year four of the following set of end-of-year cash flows? Assume an interest rate of 8 percent. Year Cash Flow 1 $1,000 2 -$1,000 3 $1,000 4 -$1,000
A) $0.00 B) $127.38 C) $173.31 D) $379.41 E) $3,312.13
The answer is B but I got E using the calculations below. How do you get $173.31?
PV= 1,000/(1+.08) + 1,000/(1+.08)^2 + 1,000/ /(1+.08)^3 + 1,000//(1+.08)^4 = 3312.127
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