Provide the numerical solution to FV and PV.
present value of the cash flow stream is 7,915.67
Interest Rate: 3%
b. What is the future value of the cash flow stream?
FV=PV(1+i/m)^mn
First Payment
FV= $-500(1+0.03/12)^(12*3)
FV= -547.02
Second Payment
FV= $5,000(1+0.03/12)^24
FV= $5,000(1.0025)^24
FV= $5,000(1.0616175704)
FV= $5,308.7852
Third Payment
FV=$0
Forth Payment
FV= $1,900(1+0.03/12)^12x0
FV= $1,900