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Homework answers / question archive / If today is year 0, whatbis the future value of the following cash flows 9 years from now? Assume an interest rate of 6
If today is year 0, whatbis the future value of the following cash flows 9 years from now? Assume an interest rate of 6.6 percent per year.
Year 2 $8.800
Year 4 $9.300
Year 6 $7.100
We know that,
Future Value = Amount * (1+rate)^(last year - current year) + Amount * (1+rate)^(last year - current year) Amount * (1+rate)^(last year - current year) + Amount * (1+rate)^(last year - current year)
Future Value = 8800 * (1+0.066)^(9 - 2) + 9300 * (1+0.066)^(9-4) + 7100 * (1+0.066)^(9-6)
= $35167.58 Answer
