Joey is planning to invest his savings in a fixed income fund. he manages to deposit $700 at the end of the first year, $500 at the end of the second year, $300 at the end of the third year, and $600 at the end of the fourth year. if the fund earns 6 percent interest each year, the terminal value of this uneven cash flow stream at the end of year 4 is

$2313.51

Step-by-step explanation:

Here we calculate the future value for each cash flow and add them up.

Given he deposited $700 at the end of the first year .

Here time to maturity is 3years and interest rate is 6%.

=  

Given he deposited $500 at the end of the second year .

Here time to maturity is 2 years and interest rate is 6%.

=   .

Given he deposited $300 at the end of the third year .

Here time to maturity is 1years and interest rate is 6%.

=   .

Also given that he deposited $600 at the end of fourth year .There will be no interest on this amount as it is done at the end.

Terminal value=833.71+561.8+318+600=$2313.51

the correct answer is b. negative exponential growth.

step-by-step explanation:

you can tell it's an exponential function because it decreases rapidly then levels out and never touches the x-axis.

it is negative because the y-axis decreases as the x-axis increases.

therefore it is a negative exponential growth graph.

hope i !