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Q 5 . You are anticipating receiving a stream of monthly cash flows starting at the end of the fifth month, with the first payment

Q5. You are anticipating receiving a stream of monthly cash flows starting at the end of the
fifth month, with the first payment being $150. Each subsequent monthly cash flow will
increase by 0.5% over the previous month's cash flow. This pattern continues until the end of
the 244th month, which marks the receipt of the final cash flow. The monthly interest rate
applicable for discounting these cash flows is 0.5%.
a) What is the present value of these cash flows? [1 mark]
b) What is the future value of these cash flows at the end of 100th month? [1 mark]
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