What is the future value of the cash flow payments

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a) An individual makes rental payments of $1,200 per month and wants to know the present value of their annual rentals over a 12-month period. The payments are made at the end of each month. The current interest rate is 8% per annum.

b) A company wants to invest $3,500 every six months for four years to purchase a delivery truck. The investment will be compounded at an annual interest rate of 12% per annum. The initial investment will be made now, and thereafter, at the ending of every six months. What is the future value of the cash flow payments?

Reference no: EM133003720

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