Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the formula to calculate the future value of an investment with multiple cash flows? FV = CF * ( 1 + r )

What is the formula to calculate the future value of an investment with multiple cash flows?
FV = CF*(1+r)+ CF*(1+r)^2+...+ CF*(1+r)
FV = CF+ CF+...+ CF
FV = CF/(1+r)+ CF/(1+r)^2+...+ CF/(1+r)- initial investment
The formula to calculate the future value of an investment with multiple cash flows is FV = CF/(1+r)+ CF/(1+r)^2+...+ CF/(1+r), where FV is the future value, CF, CF,..., CF are the cash flows, r is the interest rate, and ,^2,..., represent the time periods.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Challenges And Impacts Of Religious Endowments On Global Economics And Finance

Authors: Buerhan Saiti , Adel Sarea

1st Edition

1799812456,1799812480

More Books

Students also viewed these Finance questions