ensider the following timeline detailing a stream of cash flows: Date Cash flow me current market...

Question

Question

business finance

Answer 1

Answer #1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=1000*(1.08)^4+2000*(1.08)^3+3000*(1.08)^2+4000*(1.08)

which is equal to

=$11699(Approx).

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Answer 2

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