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.

 

Posted Date: 2/14/2013 12:16:16 AM | Location : United States





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:

FVn      =          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

 

Posted by Aliena | Posted Date: 2/14/2013 12:17:57 AM


Related Discussions:- Future value of single or multiple cash flows, Assignment Help, Ask Question on Future value of single or multiple cash flows, Get Answer, Expert's Help, Future value of single or multiple cash flows Discussions

Write discussion on Future value of single or multiple cash flows
Your posts are moderated
Related Questions
1.  Suppose you would like to buy a house and you decided you can pay 3500 per month for 30 years.  Your bank has approved you for a 30-year fixed rate mortgage loan at a quoted AP

Explain about commercial banks in depository institutions. Commercial banks: Commercial banks accept deposits or liabilities to create loans or assets and to buy governme

Your daughter is a beginning freshman in high school. By the time she enters her freshman year in college, you would like to have savings accumulated to pay her tuition for her nex

Net Present Value Method - Example Jeremy limited wishes to expand its output by purchasing a new machine worth 170,000 and installation costs are estimated at 40,000/=.  In t

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

Basic economic order quantity (EOQ) model  This model is one of the oldest and most commonly used in inventory control. It is based on a number of assumptions:  The dem

explain any four actions or transactions by shareholders that could be harmful to the interests of debt holders (sources of conflict). estion #Minimum 100 words accepted#

Download a set of financial statements "Creative Technology Ltd" From that set of Financial Statements. IN YOUR OWN WORDS, understand what the main revenue  streams of the business

$1,000 of insurance had not been used up by January 31. $325 of insurance had been used up in January

Important points for Working Capital Cycle A lengthy working capital cycle is a sign of poor management of debtors and stock reflecting low turnover of debtors and stock and l