Lucas will receive one time cash flows of 7100, 8700 and 12500 at the end of years 1,2, and 3 respectively. What's is the future value of these cash flows at the end of year five if he interest rate is 9%?

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Mathematics

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25 August, 20:45

Lucas will receive one time cash flows of 7100, 8700 and 12500 at the end of years 1,2, and 3 respectively. What's is the future value of these cash flows at the end of year five if he interest rate is 9%?

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Brenna Zhang · Answer 1

The future value of this amounts after 5 years in the order they will be recieved will be:

FV=p (1+r/100) ^n

a. $7100

FV=7100 (1+9/100) ^5

FV=7100 (1.09) ^5

FV=$10,924.23

b.$8700

FV=8700 (1+9/100) ^5

FV=8700 (1.09) ^5

FV=$ 13,386.03

c. $12500

FV=12500 (1+9/100) ^5

FV=12500 (1.09) ^5

FV=$19,232.80