Question

Assuming an interest rate of 5.2 percent, what is the value of the following cash flows five years from today?

Year	Cash Flow
1		$	3,265
2			4,435
3			5,355
4			6,580

Answer 1

Cash Flows:
Year 1 = $3,265
Year 2 = $4,435
Year 3 = $5,355
Year 4 = $6,580

Interest Rate = 5.20%

Future Value = $3,265 * 1.052^4 + $4,435 * 1.052^3 + $5,355 * 1.052^2 + $6,580 * 1.052
Future Value = $3,265 * 1.22479 + $4,435 * 1.16425 + $5,355 *1.10670 + $6,580 * 1.052
Future Value = $22,010.93

Therefore, future value of these cash flows is $22,010.93