Present value=cash flow*Present value of discounting factor(rate%,time period)
=100/1.08+100/1.08^2+100/1.08^3+200/1.08^4+350/1.08^5+500/1.08^6
=$958.00(Approx).
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
Hence future value=$958.00*(1.08)^6
=$1520.23(Approx).
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