Assuming an interest rate of 6.9 percent, what is the value of
the following cash flows five years from
today?
Year | Cash Flow | |||
1 | $ | 3,690 | ||
2 | 4,775 | |||
3 | 5,780 | |||
4 | 7,090 | |||
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period
A=3690*(1.069)^4+4775*(1.069)^3+5780*(1.069)^2+7090*(1.069)
=$24836.34(Approx).
Assuming an interest rate of 6.9 percent, what is the value of the following cash flows...
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