Question

You are going to receive $100 after one month, $110 after two months, $121 after three and four months, $133.1 after five months, $146.41 from month seven to month thirty. What is the present value of all these future cash inflows if the discount rate is 3%?

Answer 1

Rate per month = 3% / 12 =

0.25%

Periods (months)	Cash inflows	Discounting factor @ 0.25%	Present value
1	100	0.99750623	99.75
2	110	0.99501869	109.45
3	121	0.99253734	120.10
4	121	0.99006219	119.80
5	133.1	0.98759321	131.45
6	0	0.98513038	0.00
7	146.41	0.98267370	143.87
8	146.41	0.98022314	143.51
9	146.41	0.97777869	143.16
10	146.41	0.97534034	142.80
11	146.41	0.97290807	142.44
12	146.41	0.97048187	142.09
13	146.41	0.96806171	141.73
14	146.41	0.96564759	141.38
15	146.41	0.96323949	141.03
16	146.41	0.96083740	140.68
17	146.41	0.95844130	140.33
18	146.41	0.95605117	139.98
19	146.41	0.95366700	139.63
20	146.41	0.95128878	139.28
21	146.41	0.94891649	138.93
22	146.41	0.94655011	138.58
23	146.41	0.94418964	138.24
24	146.41	0.94183505	137.89
25	146.41	0.93948634	137.55
26	146.41	0.93714348	137.21
27	146.41	0.93480646	136.87
28	146.41	0.93247527	136.52
29	146.41	0.93014990	136.18
30	146.41	0.92783032	135.84
		Total	3936.27
Present value of all future values	3936.27