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Q. Show the Compound Value of the Single Flow ?

Compound Value of the Single Flow (Lump Sum):- The process of computing future value becomes very cumbersome if they have to be computed over long maturity periods 10 to 20 years. A generalized process for computing the future value of a single cash flow compounded annually is as follows:

FV = PV (1+i)ⁿ

Where FV = Future value of the preliminary flow in n years

PV= Initial Cash flow

i= Annual rate of interest

n = No. of years for which compounding is done.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M9575237

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