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Computation of present value and future value of investment

I will pay you $40,000 today, $15000 at the end of each of the next three years (first payment of $15,000 is at the end of year 1), and then $38,000 at the end of the last year. The interest rate is 6.0% per year.

A. What is the present value of this cash stream?

B. What is the future value of this cash stream on the date of the last payment assuming all the payments are invested?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9164632

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