You put $100 in the bank now, $200 in the bank a year from now, and $300 in the bank in two years. how much money will you have available 3 years from now if you earn a 7.5% rate of interest? (calculate the future value of this stream of cash flows. refer to example 5.6.)

End of year 3: $677.85

Explanation:

If the interest rate is annual effective:

Year 0 (now): $100

In a year from now I will have:

End of Year 1: $100*1,075= 107.5

Then I put $200 more, i will have $307.5

Begging of year 2: $307.5

In two years from now I will have:

End of year 2: $307.5*1.075= $330.56

Then I put $300 more, i will have $660.56

Begging of year 3: $660.56

In three years from now i will have:

$660.56*1,075= $677.85

End of year 3: $677.85

Based on the scenario, the term that best fit its description is : A. Demand elasticity

In demand elasticity, market demand will increase if the price of the product fell and the demand will decrease if the price of the product rises

hope this helps