Solving using discount factors

The cash flows for a bank account are described by the discrete CFD in Figure P9.21. The bank account has an effective annual interest rate of 4.5%. Calculate the future value of all cash flows after 15 years a. b. Calculate the future value of all cash flows after 25 years assuming that there are no more transactions after year 15 2000 1000 1000 700 700 300 12 15 2 10 11 13 14 500 750 2000 2000 Figure P9.21 Cash Flow Diagram for Problem 9.21