Future value of single or multiple cash flows, Finance Basics

Assignment Help:

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

A. michael spence, A. Michael Spence An American economist who was awar...

A. Michael Spence An American economist who was awarded by the Nobel Memorial Prize in Economic Sciences. Spence is a lecturer of management at Stanford University in the Gradu

Role of venture capital in economic development, Role of Venture Capital in...

Role of Venture Capital in Economic Development The categories of venture that capitalists might invest will include: a) Business start-ups - Whenever a business has been

Social responsibility - objectives of business entity, Social responsibilit...

Social responsibility - Objectives of Business Entity The firm must decide where to operate strictly in their shareholders' best interests or be responsible to their staff, th

Expectation theory, Expectation Theory The theory states here that the...

Expectation Theory The theory states here that the yield curve depends on the expectation concerning with future inflation rates. The rate on long-term bonds will exceed, If i

Replacement of old school buses , Identify one each (1) benefit, (2) disbe...

Identify one each (1) benefit, (2) disbenefit, and (3) monetary cost that would impact each of the following projects: a.A new electrical distribution station in a developing pa

Time value of money, Compute the future value of $2,500 compounded annually...

Compute the future value of $2,500 compounded annually for 10 years at 6%

Advantages of residual theory, Advantages of Residual Theory 1. Savin...

Advantages of Residual Theory 1. Saving on floatation costs No require to raise debt or equity capital as there is high retention of earnings that necessitates no floatat

Role of stock exchange in economic development, Role of Stock Exchange in E...

Role of Stock Exchange in Economic Development The Roles of Stock Exchange in Economic Development are as follow: 1. Raising Capital for Businesses The Stock Exchange

Comparison a competing firm-analysts earnings estimates, Comparison to a Co...

Comparison to a Competing Firm In Mergent Horizon, return to the competitor page, but now enter the list of competitors "As Defined by the Company." From this list select a f

Calculate future value, Your grandparents put $1,000 into a saving account ...

Your grandparents put $1,000 into a saving account for you when you were born 30 years ago. This account has been earning interest at a compound rate of 7%. What is its value today

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