Future value of single or multiple cash flows, Finance Basics

Do your experts provide Future Value of Single or Multiple Cash Flows assignment help? I need urgent help in my college assignment.

Related Discussions:- Future value of single or multiple cash flows

Calculate the average number , The table below gives data on the average nu...

The table below gives data on the average number of football games attended per year among a population of students at a small college, separately by major. All students are in one

Concepts in accounting, J inherited 30000 & decides to open a hair salon.ma...

J inherited 30000 & decides to open a hair salon.make arrangements 1/4/1016 commits 10000 to the business Opens an a/c under j hair salon What will be the amount under capital in

What is holding period return, What is Holding Period Return/Return ...

What is Holding Period Return/Return Holding period yield (HPY) measures the total return from an investment during a given time period in which asset is held by the investo

Banking credit, some report about credit bank

some report about credit bank

What are depository institutions, What are depository institutions? Dep...

What are depository institutions? Depository institutions: intermediaries along with an important proportion of their funds derived through customer deposits as consists of: co

Income statement-balance sheet and cash flow, Looking at the income stateme...

Looking at the income statement, balance sheet and cash flow statement of the company and relating it with the non financial factors, I have the important observations as below:-

Functions of central bank, Functions of Central Bank a) Ensure Economi...

Functions of Central Bank a) Ensure Economic stability b) Lender to the government c) Printing of currency notes d) Banker to the government e) Lender of last reso

Describe the accruals-based financial statements, On 1 January 2008, a youn...

On 1 January 2008, a young artist called Michelangelo signed a contract with a charity named Art Angels, which supports young artists to do large projects. The agreement requires M

Example of eoq assumptions, Example of EOQ Assumptions ABC Ltd require...

Example of EOQ Assumptions ABC Ltd requires 2,000 units of a component in its manufacturing method in the coming year that costs of Sh.50 each. The items are obtainable locall

Reasons for major growth in venture capital, Reasons for major Growth in Ve...

Reasons for major Growth in Venture Capital Reasons for Significant Growth in the Developed Countries in Venture Capital i) Public attitude that is a favorable attitude

Aliena

2/14/2013 12:17:57 AM

Future value of single or multiple cash flows

To determine the future value of cash flows, we must apply the compounding technique. Compounding may be yearly/annually, half-yearly, quarterly, monthly etc.

Future Value of Single Cash Flow

Future value can be calculated by the following formula:

FV_n = PV (1 + r)_n

Where

FV= Future value

PV= Present value

r = Rate of Interest

n = Number of periods

Example: FV of single cash flow compounded annually

Let us compute the future value of an investment of $ 2,000 compounded annually/yearly at the rate of 12%, after 4 years period.

FV	=	$ 2,000 x (1 + 0.12) ⁴
	=	$ 3,147.04

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages