What is the future value on December 31, 2022, of 7 annual cash flows of $10,000

Question

What is the future value on December 31, 2022, of 7 annual cash flows of $10,000 with the first cash payment being made on December 31, 2016, and interest at 12% being compounded annually? What is the future value on December 31, 2022, of 7 annual cash flows of $10,000 with the first cash payment being made on December 31, 2016, and interest at 12% being compounded annually? What is the future value on December 31, 2022, of 7 annual cash flows of $10,000 with the first cash payment being made on December 31, 2016, and interest at 12% being compounded annually?

Explanation / Answer

Or using excel formula

=FV(12%,7,-10000,,0)

Future Value = $100,890.12

It has been assumed that FV is being calculated at beginning of year and cash flow will occur at year end Opening Balance Cash flow Interest Closing Balance $0.00 $10,000.00 $0.00 $10,000.00 $10,000.00 $10,000.00 $1,200.00 $21,200.00 $21,200.00 $10,000.00 $2,544.00 $33,744.00 $33,744.00 $10,000.00 $4,049.28 $47,793.28 $47,793.28 $10,000.00 $5,735.19 $63,528.47 $63,528.47 $10,000.00 $7,623.42 $81,151.89 $81,151.89 $10,000.00 $9,738.23 $100,890.12 FV on Dec 31, 2022 $100,890.12

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.