Rick is planning to invest the following amounts at 7 percent: $254 at the end of year 1, $412 at the end of year 2, and $1,230 at the end of year 3. How much money will he have saved at the end of year 3

$1,961.65

Explanation:

The formula for finding future value :

FV = P (1+r)^n

P = Present value

R = interest rate

N = number of years

First step is to find the present value of the cash flows.

PV can be found using a financial calculator

Cash flow in year 1 = $254

Cash flow in year 2 = $412

Cash flow in year 3 = $1,230

I = 7%

Present value = $1,601.29

I would now input the value of p in the FV formula

$1,601.29 ( 1 + 0.07) ^3 = $1,961.65

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

this conflict is person vs. society

if you need further explanations, comment below!

hope this ! < 3