What is the present value of the following uneven cash flow stream? The appropriate interest rate is 10 percent, compounded annually.

YEAR AMOUNT

0 $0

1 $100

2 $200

3 -$200

4 $100

What is the future value of $100 after 3 years under 10 percent monthly compounding?

We sometimes need to find how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales are growing at a rate of 6 percent per year, how long will it take sales to double?