What is the value in year 11 of a $200 cash flow made in year 3 if interest rates are 11 percent?

**Note: Do not round intermediate calculations. Round your answer to 2 decimal places.**

To find the value of a $200 cash flow made in year 3 at year 11, we can use the **future value formula**:

\[
FV = PV \times (1 + r)^n
\]

Where:
- $ PV $ is the present value or the cash flow amount (\$200),
- $ r $ is the interest rate (11% or 0.11),
- $ n $ is the number of periods between the present value and the future date (from year 3 to year 11, so $ n = 11 - 3 = 8 $).

Now we can plug in the values:

\[
FV = 200 \times (1 + 0.11)^8
\]

Let me calculate this for you.The future value of the $200 cash flow made in year 3, at year 11 with an interest rate of 11%, is approximately **$460.91**.

Would you like further details or have any questions? Here are some related questions to expand on this concept:

1. What is the future value formula and how is it derived?
2. How does compounding frequency affect future value calculations?
3. How would the future value change if the interest rate was different?
4. How do you calculate the present value of a future cash flow?
5. What happens if there are multiple cash flows at different times?

**Tip:** Always keep track of the number of periods when calculating future or present values, especially when dealing with time frames other than annual compounding.

What is the value in year 11 of a $200 cash flow made in year 3 if interest rates are 11 percent?

Learn how to calculate the future value of a $200 cash flow made in year 3, projected to year 11 with an 11% interest rate. Understand the future value formula and compounding interest over 8 years. Suitable for students in Grades 10-12.

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