Math Problem Statement
Given the following cash inflow at the end of each year, what is the future value of this cash flow at 5 %, 8 %, and 17% interest rates at the end of year 7?
Year Cash Inflow
1 14,000
2 22,000
3 30,000
4 0
5 0
6 0
7 130,000
Solution
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Math Problem Analysis
Mathematical Concepts
Future Value
Compound Interest
Cash Flow Analysis
Formulas
FV = C × (1 + r)^(n - t)
Where FV is future value, C is cash inflow, r is interest rate, n is the final year, and t is the year of cash inflow.
Theorems
Time Value of Money
Compound Interest Theorem
Suitable Grade Level
College-level Finance/Math