If you spend S15243 today but save S9055 3 ycar from today a

If you spend S15,243 today, but save S9,055 3 ycar from today and $11,704 2 years from now, how much are thesc cash flows worth 21 years from today? Assume 1-3%

Solution

Year cash flows FVF @ 3% Future value 0 -15243 1.860295 -28356.5 1 0 1.806111 0 2 11704 1.753506 20523.03 3 9055.3 1.702433 15416.04 4 0 1.652848 0 5 0 1.604706 0 6 0 1.557967 0 7 0 1.51259 0 8 0 1.468534 0 9 0 1.425761 0 10 0 1.384234 0 11 0 1.343916 0 12 0 1.304773 0 13 0 1.26677 0 14 0 1.229874 0 15 0 1.194052 0 16 0 1.159274 0 17 0 1.125509 0 18 0 1.092727 0 19 0 1.0609 0 20 0 1.03 0 21 0 1 0 Future value of Cash flows 7582.61