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If today is Year 0, what is the future value of the cash flows five years from n

ID: 2653945 • Letter: I

Question

If today is Year 0, what is the future value of the cash flows five years from now? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

If today is Year 0, what is the future value of the cash flows ten years from now? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Consider the following cash flows:

Explanation / Answer

If today is Year 0, what is the future value of the cash flows five years from now? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Future Value in year 5 = 22900*(1+9.7%)^3 + 40900*(1+9.7%)^2 + 58900

Future Value in year 5 = $ 138,350.62

Answer

If today is Year 0, what is the future value of the cash flows ten years from now? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Future Value in year 10 = 22900*(1+9.7%)^8 + 40900*(1+9.7%)^7 + 58900*(1+9.7%)^5

Future Value in year 10 = $ 219,793.21

Answer

Requirement 1:

If today is Year 0, what is the future value of the cash flows five years from now? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)