(4) Compute the future worth for the following cash flows (at year 5). sx 4x 2x

Question

(4) Compute the future worth for the following cash flows (at year 5). sx 4x 2x (5) A series of monthly cash flows is deposited into an account that earns 12% annual nominal nterest d monthly. Each monthly deposit is equal to $2.500. The first monthly deposit occurred on amonthly July 1, 2013 and the last monthly deposit will be on March 1, 2020. The account (the series of deposits, 12% nominal interest, and monthly compounding) also has equivalent quarterly withdrawals from it. The first quarterly withdrawal is equal to $5,200 and occurred on December 1,2013. The last $5,200 withdrawal will occur on March 1, 2020. How much remains in the account after the last

Explanation / Answer

4. Future worth = 5x*(1.15^4)+4x*(1.15^3)+3x*(1.15^2)+2x*(1.15)+x

= 22.0960x

(assuming that all cash flows occur at the end of the period)

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