Future Value of a series of unequal cash flow
The Future Value of a series of unequal cash flow is defined as the total value of the series of unequal cash flow at a specific future date taking into account compound interests.For example,
| Period 1 | Cashflow of $1000 | Future Value at Period 3 is $1102.50 |
| Period 2 | Cashflow of $2000 | Future Value at Period 3 is $2100.00 |
| Period 3 | Cashflow of $1500 | Future Value at Period 3 is $1500.00 |
The Worksheet Future Value(Unequal Cash Flow) in Future Value.xls illustrates how to calculate the future value of a series of unequal cash flow as above.
We have completed the discussion on Future Value. Basically Future Value allows us to compute the value of an amount of money today or a series of cash flow at a specific future date taking into account compound interests. This allows us a consistent point of comparison and measurement at a specific date to make our financial decisions. In the next section, we will proceed to discuss Present Value, which is the opposite or reverse of Future Value.
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Present Value of a Lump Sum to be received in the Future
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