Question

, determine the future value at the end of the final year if deposits are made into an account paying annual interest of 12%, assuming that no Value of a mixed stream For the mixed stream of cash flows shown in the following table, withdrawals are made during the period and that the deposits are made: a. At the end of each year. b. At the beginning of each year. a. The future value at the end of the final year if deposits are made at the end of each year is Round to the nearest dollar.)

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.A=18300*(1.12)^4+15250*(1.12)^3+12200*(1.12)^2+6100*(1.12)+3050

=$75406(Approx).

b.A=18300*(1.12)^5+15250*(1.12)^4+12200*(1.12)^3+6100*(1.12)^2+3050*(1.12)

=$84455(Approx).