Consider a series of end-of-period CFs spanning 2046-2055, which decrease by a fixed amount each period. The amount of the first CF in the series is $71 and the decrement is $71. The interest rate is 3.5%. What is the equivalent value of this series at the end of 2055?
FV = -2679.33
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Year |
Cash flow |
PV factor @3.5% |
PV of cash flow |
2046 |
71 |
1.362897353 |
96.76571208 |
2047 |
0 |
1.316809037 |
0 |
2048 |
-71 |
1.272279263 |
-90.33182766 |
2049 |
-142 |
1.229255326 |
-174.5542563 |
2050 |
-213 |
1.187686306 |
-252.9771831 |
2051 |
-284 |
1.147523001 |
-325.8965322 |
2052 |
-355 |
1.108717875 |
-393.5948456 |
2053 |
-426 |
1.071225 |
-456.34185 |
2054 |
-497 |
1.035 |
-514.395 |
2055 |
-568 |
-568 |
|
Total |
-2679.325783 |
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