# Calculating present/ future value of given cash flows

1. Calculate the future value of 1,535 invested today for 8 years at 6 percent.

2. What is the total present value of the following cash stream, discounted at 8 percent?

Year Amount

1 400

2 750

3 945

4 145

5 78

3. If you invested $2,000 per year into an IRA for 30 years and received 6 percent return each year, what would the account balance be in 30 years?

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#### Solution Preview

Please refer attached file for missing formulas. Formulas typed with the help of equation writer are missing here.

1.Calculate the future value of 1,535 invested today for 8 years at 6 percent.

Present Value of cash flow (PV)=$1535

Number of periods=n=8 years

Return=i=6%

FV of single cash flow=PV*(1+i)^n

FV=1535*(1+6%)^8=$2446.56

Future value of 1,535 invested today for 8 years at 6 percent will be $2446.56

2.What ...

#### Solution Summary

Solution describes the steps to calculate present and future value of cash flows.