Question

Consider a series of $12,564 end-of-period CFs spanning 2015-2024. The interest rate is 5%. What is...

Consider a series of $12,564 end-of-period CFs spanning 2015-2024. The interest rate is 5%. What is the equivalent value of this series at the beginning 2015? (answer: $97,015.88)

This is the answer but i do not know the formula to get this answer. Thanks.

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Answer #1

We just need to use present value formula to find the value at the begining.

PV = CF1/(1+R)1+CF2/(1+R)2+...................+CF10/(1+R)10

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