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Compute the future value of a $155 cash flow for the following combination of rates and times. 1. r =7%m t=10 years 2. r =7%m t=20 years 3. r =3%m t=10 years 4. r =3%m t=20 years

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter1: Understanding Personal Finance

Section1.4: Perform Time Value Of Money Calculations

Problem 3CC

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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Compute the future value of a $155 cash flow for the following combination of rates and times.

1. r =7%m t=10 years

2. r =7%m t=20 years

3. r =3%m t=10 years

4. r =3%m t=20 years

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