Assuming an interest rate of 6.6 percent, what is the value of the following cash flows five years from today? Year Cash Flow 1 $ 3,615 2 4,715 3 5,705 4 7,000
Future value = CF(1+r)n
Future value = CF (1+r)4 +CF (1+r)3 +CF (1+r)2 +CF (1+r)1
Future value= 3615 (1+.066)4 + 4715(1.066)3 + 5705 (1+.066)2 + 7000(1+.066)= 4668.07+ 5711.54+ 6482.91+ 7462=24324.52
CF means cash flow,
r means rate of interest
n mean number of period
Assuming an interest rate of 6.6 percent, what is the value of the following cash flows...
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