A company invested Rs. 1000 each year for the first 5 years. Then the amount decreased...

A company invested Rs. 1000 each year for the first 5 years. Then the amount decreased by Rs.
50 each year for the next 4 years. Find the future value at the end of cashflow if interest rate is
10%/year

Solutions

Expert Solution

Year	Cash inflow (outflow)	Table Factor	Present Value of Cash Flows	Cumulative present value of cash flows
1	-1000	0.91	-909.09	-909.09
2	-1000	0.83	-826.45	-1,735.54
3	-1000	0.75	-751.31	-2,486.85
4	-1000	0.68	-683.01	-3,169.87
5	-1000	0.62	-620.92	-3,790.79
6	-950	0.56	-536.25	-4,327.04
7	-900	0.51	-461.84	-4,788.88
8	-850	0.47	-396.53	-5,185.41
9	-800	0.42	-339.28	-5,524.69

	Present Value	-5,525.00
	Future Value	-13,027.66	"=-5,525*(1.1)^9"

ekkarill92 answered 1 year ago

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