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Uppose that you promise to pay your sister $10,000 a yearfor five yearswith the first payment occurring one year from today.if the interest rate is 5%, what will this stream of cash flows be worth to her11years
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Uppose that you promise to pay your sister $10,000 a yearfor five yearswith the first payment occurring one year from today.if the interest rate is 5%, what will this stream of cash flows be worth to her11years from now?

User Rob Mensching
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1 Answer

5 votes
FW = 10000×(((1.05^5)-1)÷0.05)×1.05^5 = $70522.60
User Mojgan
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