Question

Assuming an interest rate of 6.3 percent, what is the value of the following cash flows...

Assuming an interest rate of 6.3 percent, what is the value of the following cash flows four years from today?

Year Cash Flow
1 $ 3,225
2 4,220
3 6,110
4 8,245
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Answer #1
Year Calculations future value
1 =3225*(1+0.063)^3 $          3,873.73
2 =4220*(1+0.063)^2 $          4,768.47
3 =6110*(1+0.063)^1 $          6,494.93
4 =8245*(1+0.063)^0 $          8,245.00
Total $       23,382.13
Value of cash flow = $23382.13
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