Question

For the following mixed stream of cash​ flows, determine the future value at the end of the final year if deposits are made at the beginning of each year into an account paying annual interest of

1010​%,

assuming no withdrawals are made during the period.  

Year	Cash Flow Stream
1	17 comma 00017,000
2	8 comma 5008,500
3	7 comma 0007,000

Year	Cash Flow Stream
1	17 comma 00017,000
2	8 comma 5008,500
3	7 comma 0007,000
Future Value ​($)equals=	nothing	​(Round to the nearest​ cent.)

Answer 1

Future Value
Last period=	3
Compounding rate	10.000%
Year	0	1	2
Cash flow stream	17000	8500	7000
Compounding factor	1.331	1.210	1.100
Compounded cash flows	22627.000	10285.000	7700.000
FV = Sum of compounded cash flows
FV=	40612.00
Where
Compunding factor =	(1 + rate)^(Last period-Corresponding period in years)
Compounded Cashflow=	Cash flow stream*compounding factor