Question

If you could reinvest the cash flow stream of $1000, $1200, $1500, $1700, $2000, $2500, $2900, and $3500 at 11.5% interest, how much will you have from this investment in 8 years? (In other words, what is the future value of this stream of cash flows?) Note that the cash flows are not necessarily the same as the previous problem's cash flows. Round to the nearest cent.

Answer 1

Year	Cash flow	Future value of 1	Future value of cash flow
a	b	c=1.115^(8-a)	d=b*c
1	$       1,000	2.1425	$   2,142.52
2	$       1,200	1.9215	$   2,305.85
3	$       1,500	1.7234	$   2,585.03
4	$       1,700	1.5456	$   2,627.53
5	$       2,000	1.3862	$   2,772.39
6	$       2,500	1.2432	$   3,108.06
7	$       2,900	1.1150	$   3,233.50
8	$       3,500	1.0000	$   3,500.00
Total			$ 22,274.88