You have savings amounting to $1,200 (CF0) and you expect to save an additional $800 next year. You need your savings to pay for your tuition fees of $800 in 2 years and $1,000 in 3 years. What is the value of this cash flow today if your savings will earn 6%?

Answer rating: 100% (QA)

Interest rate 8 6 year 1 Pu q ef 0 1 2 3 Cash flow Cf 7 ... View the full answer