Trusted by Students Everywhere
Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
You invest $17000 in year 0
You invest $17000 in year 0.
Year 1 payout is $3244. Year 2 payout is $6532. Year 3 payout is $5059.
Interest rate is 3% p.a.
What is the future value of the cashflow after 3 years?
Expert Solution
| Future Value | ||||
| Last period= | 3 | |||
| Compounding rate | 3.000% | |||
| Year | 0 | 1 | 2 | 3 |
| Cash flow stream | -17000 | 3244 | 6532 | 5059 |
| Compounding factor | 1.093 | 1.061 | 1.030 | 1.000 |
| Compounded cash flows | -18576.359 | 3441.560 | 6727.960 | 5059.000 |
| FV = Sum of compounded cash flows | ||||
| FV= | -3347.84 | |||
| Where | ||||
| Compunding factor = | (1 + rate)^(Last period-Corresponding period in years) | |||
| Compounded Cashflow= | Cash flow stream*compounding factor |
Archived Solution
Unlocked Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
Already a member? Sign In
Important Note:
This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.
For ready-to-submit work, please order a fresh solution below.
For ready-to-submit work, please order a fresh solution below.
Or get 100% fresh solution
Get Custom Quote
