You own a contract that promises an annuity cash flow of 100 ...

[bobbie]

You own a contract that promises an annuity cash flow of 100 end-of-the-year cash flows for each of the next three years (note: the first cash flow is exactly one year from today).
 
  At an interest rate of 10, what is the future value of this contract exactly three years from today?
  A) 248.69
  B) 273.55
  C) 331.00
  D) 364.10

Question 2

Money market deposit accounts and money market mutual funds are identical financial products.
 
  Indicate whether the statement is true or false

[allisonblackmore]

Answer to Question 1

C
Explanation: C) Via Calculator: N = 3, I = 10, PMT = 100, Solve for FV =331.00.

Answer to Question 2

FALSE