Finding the Future Value of the Given Stream
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For each of the mixed streams of cash flows shown in the following table, determine the future value at the end of the final year if deposits are made at the beginning of each year into an account paying annual interest of 12%, assuming that no withdrawals are made during the period.
Cash flow stream
Year A B C
1 900 30,000 1,200
2 1,000 25,000 1,200
3 1,200 20,000 1,000
4 10,000 1,900
5 5,000
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The solution explains the steps to find out future values of given cash streams.
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Solution:
Year A B C
1 900 30,000 1,200
2 1,000 25,000 1,200
3 1,200 20,000 1,000
4 10,000 1,900
5 5,000
Future Value of Cash flow=Cash Flow*(1+interest ...
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- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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