Question

you plan to deposit $2000 today $4000 in one year and $2000 in two years into an account earning 5.4% interest what will the account balance be in four years round to the nearest cent

Answer 1

FV = Sum [ CF * FVF(r%, n) ]

FVF(r%, n) = ( 1 +r)^n

r - Int Rate per anum

n = Bala Yrs

Year	Bal Yrs	Cash Flow	FVF @5.4%	FV of CF
0	4	$ 2,000.00	1.2341	$   2,468.27
1	3	$ 4,000.00	1.1709	$   4,683.62
2	2	$ 2,000.00	1.1109	$   2,221.83
3	1	$             -	1.0540	$               -
4	0	$             -	1.0000	$               -
FV of CFs				$   9,373.72

Amount in account after 4 years is $ 9373.72