Homework Answers
ANSWER
FV=PV
where FV=Future Value,
PV =Present Value,
r=rate of interest,
t= time
CFD"s for 5 Year,
FV=PV (1+I)T
1ST YEAR END 1000 = FV = 1000 (1+0.10)5 =1000(1.1)5
= £1610.51
2ND YEAR END 4000=FV = 4000 (1+0.10)4 =4000 (1.1)4
= £5856.4
3RD YEAR END 9000 =FV = 9000 (1+0.10)3=9000 (1.1)3
=£11979
4TH YEAR END 5000 =FV = 5000 (1+0.10)2= 5000 (1.1)2
= £6050
5TH YEAR END 2000 =FV = 2000 (1+0.10)1= 2000 (1.1)1
= £2200
TOTAL= 1610.51 + 5856.4 + 11979 + 6050 +2200
= £27,695.91
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