What is future value of cash flow stream

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Reference no: EM131966882

Provide the numerical solution to FV and PV.

present value of the cash flow stream is 7,915.67

Interest Rate: 3%

b. What is the future value of the cash flow stream?

FV=PV(1+i/m)^mn

First Payment

FV= $-500(1+0.03/12)^(12*3)

FV= -547.02

Second Payment

FV= $5,000(1+0.03/12)^24

FV= $5,000(1.0025)^24

FV= $5,000(1.0616175704)

FV= $5,308.7852

Third Payment

FV=$0

Forth Payment

FV= $1,900(1+0.03/12)^12x0

FV= $1,900

Reference no: EM131966882

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