Question

If Norm had the following cash inflows and cash outflows over a 15-year period, and the account was giving him an interest rate of 7% per annum, what will be the ending balance (or the FV) for the account. Cash Years Cash Inflow Outflow $7,000 ($1,300 $2,500 ($6,600 2 $0 $0 $0 ($2,500) ($3,750 $2,500 ($4,500) $9,050 $0 $0 ($1,300) $6,090 ($2,580)| 9 $0 $0 $0 ($3,675) $4,850 ($1,300)| $0 ($4,700) 13 $15,280 ($3,750) $0 ($3,000) 15 $0 $5,800) 12

Answer 1

Years	Cash Inflow	Cash Outflow	Net cash flow	Future Value Factor @ 7%	Future Value of cash flows
0	7,000	-1,300	5,700	2.759031541	15,726
1	2,500	-6,600	-4,100	2.57853415	-10,572
2	-	-	-	2.409845	-
3	-	-2,500	-2,500	2.252191589	-5,630
4	-	-3,750	-3,750	2.104851952	-7,893
5	2,500	-4,500	-2,000	1.967151357	-3,934
6	9,050	-	9,050	1.838459212	16,638
7	-	-1,300	-1,300	1.71818618	-2,234
8	6,090	-2,580	3,510	1.605781476	5,636
9	-	-	-	1.500730352	-
10	-	-3,675	-3,675	1.402551731	-5,154
11	4,850	-1,300	3,550	1.31079601	4,653
12	-	-4,700	-4,700	1.225043	-5,758
13	15,280	-3,750	11,530	1.1449	13,201
14	-	-3,000	-3,000	1.07	-3,210
15	-	-5,800	-5,800	1	-5,800
				Ending Balance of account	5,669