Future Worth Calculations For the cash flows shown calculate

Future Worth Calculations For the cash flows shown, calculate the future worth in year 9 using 10% per year Year 0 23 4 5 6 Cash Flow,$1 200 200 200 200 300 300 300

Solution

Future worth, year 9 = 200 x FVIF(10%, 9) + 200 x FVIF(10%, 8) + 200 x FVIF(10%, 7) + 200 x FVIF(10%, 6) + 300 x FVIF(10%, 5) + 300 x FVIF(10%, 4) + 300 x FVIF(10%, 3)

= 200 x (2.3579** + 2.1436** + 1.9487** + 1.7716**) + 300 x (1.6105** + 1.4641** + 1.331**)

= 200 x 8.2218 + 300 x 4.4056

= 1,644.36 + 1,321.68

= 2,966.04

**From FVIF Factor table