What is the accumulated sum of each of the following streams of payments?
1. $500 a year for 10 years compounded annually at 5 percent
2. $100 a year for 5 years compounded annually at 10 percent
3. $35 a year for 7 years compounded annually at 7 percent
4. $25 a year for 3 years compounded annually at 2 percent
We are being asked to calculate the future value of an annuity
Annuity years (n) interest ( r ) Future value factor for annuity= ((1+r)^n-1)/r= Accumulated ...
Present Value and Future Value of Annuities
How would a manager calculate present value and future value for single amounts, annuities, and uneven streams of cash flow.View Full Posting Details