If Norm had the following cash inflows and cash outflows over a 15-year period, and the account was giving him an interest rate of 7% per annum, what will be the ending balance (or the FV) for the account. Years Cash Inflow 0 $7,000 1 $2,500 2 3 4 5 6 7 8 9 10 11 12 13 14 15 O $5,669 O $14,324 O $10,421 O $16,667 Cash Outflow $0 $0 $0 $2,500 $9,050 $0 $6,090 $0 $0 $4,850 $0 $15,280 $0 $0 ($1,300) ($6,600) $0 ($2,500) ($3,750) ($4,500) $0 ($1,300) ($2,580) $0 ($3,675) ($1,300) ($4,700) ($3,750) ($3,000) ($5,800)
If Norm had the following cash inflows and cash outflows over a 15-year period, and the account was giving him an interest rate of 7% per annum, what will be the ending balance (or the FV) for the account. Years Cash Inflow 0 $7,000 1 $2,500 2 3 4 5 6 7 8 9 10 11 12 13 14 15 O $5,669 O $14,324 O $10,421 O $16,667 Cash Outflow $0 $0 $0 $2,500 $9,050 $0 $6,090 $0 $0 $4,850 $0 $15,280 $0 $0 ($1,300) ($6,600) $0 ($2,500) ($3,750) ($4,500) $0 ($1,300) ($2,580) $0 ($3,675) ($1,300) ($4,700) ($3,750) ($3,000) ($5,800)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:If Norm had the following cash inflows and cash outflows over a 15-year
period, and the account was giving him an interest rate of 7% per annum,
what will be the ending balance (or the FV) for the account.
Years Cash Inflow
이 $7,000 ($1,300)
1 $2,500
($6,600)
2
$0
3
4
5
6
7
8
9
10
11
12
13
14
15
$5,669
$14,324
Cash
Outflow
$10,421
O $16,667
$0
$0
$0
$2,500
$9,050
$0
$6,090
$4,850
$0
$15,280
$0
$0
$0
$0
($2,500)
($3,750)
($4,500)
$0
($1,300)
($2,580)
$0
($3,675)
($1,300)
($4,700)
($3,750)
($3,000)
($5,800)
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