Question

Compute the future value of a $105 cash flow for the following combinations of rates and times.

a. r = 8%; t = 10 years
b. r = 8%; t = 20 years
c. r = 4%; t = 10 years
d. r = 4%; t = 20 years

Answer 1

The answer is

A. $226.69

B. $489.40

C. $155.43

D. $230.07

Step-by-step explanation:

A.

PV = 105

i = 8%

N = 10years

FV =. ?

Using texas BA II plus

PV -105; I/Y = 8; N = 10; CPT FV= 226.69

Therefore, future value of $105 is $226.69

B.

PV = 105

i = 4%

N = 10years

FV =. ?

Using texas BA II plus

PV -105; I/Y = 8; N = 20; CPT FV= 489.40

Therefore, future value of $105 is $489.40

C.

PV = 105

i = 4%

N = 10years

FV =. ?

Using texas BA II plus

PV -105; I/Y = 4; N = 10; CPT FV= 155.43

Therefore, future value of $105 is $155.43

D.

PV = 105

i = 4%

N = 20years

FV =. ?

Using texas BA II plus

PV -105; I/Y = 4; N = 20; CPT FV= 230.07

Therefore, future value of $105 is $230.07