HOW TO SOLVE USING CASH FLOW SERIES METHOD ON BA 2 PLUS?
Share
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
CF mode should be generally used to calculate the present value given that a series of cash flows are coming in future dates.
This question can be solved by calculating FV of individual cash flows & then summing it up.
BGN Mode:
-1000 PV
10 I/Y
3-N
CPT FV – STO1
Likewise for 1500 & 2000.
For CF mode you can follow below steps,
CF0 – 1000
CF1 – 1500 Frequency 0
CF2 – 2000 Frequency 0
NPV, I = 10% Arrow down CPT NPV – 4016.5289
Then,
PV – 4016.5289,
I/Y – 10%,
N – 3
CPT FV – 5346.
Hope this helps.
why f=0 can you explain plz explain
Frequency will be 0 as you are not depositing the same amount for the subsequent year. The amount that you are depositing is like :
Year 1 – 1000 (1000 is not being repeated for next year the amount is being changed to 1500)
Year 2– 1500
Year 3 – 2000.
Thank You