Homework Answers
Cash Flow diagram
b) Cash received from EOY 3 to EOY 6
First value received is 1000 then increasing by 1000 each uptil EOY 6
I = 5%
Future value at EOY 6 = 1000 * (F/A, 5%, 4) + 1000 *(F/G, 5%,4)
= 1000 * 4.310125 + 1000*2.22355
= 10512.625
Future value at EOY 9= 10512.625 * (F/P, 5%,3) = 10512.625 * 1.157625 = 12169.68
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