Answer to Question #188073 in Economics for Mohd Owais

Question

When deposit into saving account is with a 12 percent rate of return per year. Determinae the future value of 7 year.Tge cash flow of 4 year is 4000 and after that 3 year is 3000 respectively.

Answer 1

The future value after the 7 years is:

$FV = (((4000×(1.12^4 - 1)/0.12 + 3000)×1.12 + 3000)×1.12 + 3)×1.12 = 34,839.79.$