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

OPTION, DEFINE THE TERM OPTION IN DETAIL?

DEFINE THE TERM OPTION IN DETAIL?

Managing financial resources, Two friends, Alan & Tim just graduated from t...

Two friends, Alan & Tim just graduated from the college. They plan to start their own business, of selling health foods for office workers. They have identified a commercial comple

Risk adjusted discounting rate – methods of computing cost, Risk Adjusted D...

Risk Adjusted Discounting Rate - Methods of Computing Cost of Capital This method is used to establish the discounting rate to be used for a provided project. The cost of capi

Abcfgh , hgjhghjg

hgjhghjg

Nash equilibrium, Suppose that two players are playing the following game. ...

Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the foll

What are the types of money and bank regulations, What are the types of Mon...

What are the types of Money and Bank Regulations? Types of Money : a. Commodity money b. A commodity-backed money c. Fiat money Bank Regulations: a. Deposit i

Money market mutual funds (), why i cant found date for mmmfs like total as...

why i cant found date for mmmfs like total asset or number of share or return ???? i search alot and i found words instead of number

End of Chapter Problems, The Audiology Department at Randall Clinic offers ...

The Audiology Department at Randall Clinic offers many services to the clinic''s patients. The three most common , along with cost and utilization data, are as follows: Service Var

Finance Assignment, I have an assignment for my finance class. The company ...

I have an assignment for my finance class. The company that i have FOR industry analysis is COSTCO WHOLESALES CORP THAT ITS STOCK IS IN DISCOUNT AND VARIETY StORES INDUSTRY. I need

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

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