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13. What is the future value of a stream of cash flows 6...

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Finance

13.

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What is the future value of a stream of cash flows 6 years from today if the interest rate is 5% per year and where: Today (period 0) you invest $1000 One year from today (period 1) you invest an additional $2000 Four years from today (period 4) you invest an additional $500 Note: In answering this question, it would be helpful to draw a timeline and visualize the cash flows. + 4 OA. $2000 $500 FV = $1000 + (1 +0.05). (1+0.05)4 OB. FV = $1000 + S2000(1+0.05)' + $500(1 +0.05) OC. FV = $1000(1 +0.05) + $2000(1 +0.05)5 + $500(1 +0.05)2 OD. None of these expressions is correct O E. $1000 $2000 $500 (1 +0.05). (1+0.05)5 (1 +0.05)2 FV = + +

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