In: Finance
You are given an investment to analyze. The cash flows from this investment are End of year $1,889 $4,423 $631 $2,091 $1,431 What is the future value of this investment at the end of year five if 13.93 percent per year is the appropriate interest (discount) rate?
| Statement showing future value in case of annual payments | |||
| Year | Cash flow | Future Value at end of Year 5 | Working Notes |
| 1.00 | 1,889.00 | 3,182.62 | 1889*(1.1393)^4 |
| 2.00 | 4,423.00 | 6,540.81 | 4423*(1.1393)^3 |
| 3.00 | 631.00 | 819.04 | 631*(1.1393)^2 |
| 4.00 | 2,091.00 | 2,382.28 | 2091*(1.1393)^1 |
| 5.00 | 1,431.00 | 1,431.00 | 1431*(1.1393)^0 |
| 10,465.00 | 14,355.74 | ||
| Future value is $14355.74 | |||