Scottie Barnes has an investment that will pay him $6,400, $6,450, $7,225, and $7,500 over the next four years. If his opportunity cost is 10 percent, what is the future value of the cash flows he will receive

Total FV= $34,947.44

Explanation:

Giving the following information:

Cash flows:

1= $6,400

2= $6,450

3= $7,225

4= $7,500

Opportunity cost= 10%

To calculate the future value of the cash flows, we need to use the following formula on each cash flow:

FV= Cf*(1+i)^n

i= opportunity cost

FV1= 6,400*1.1^4= 9,370.24

FV2= 6,450*1.1^3= 8,584.95

FV3= 7,225*1.1^2= 8,742.25

FV4= 7,500*1.1= 8,250

Total FV= $34,947.44

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

the answer is b for dog