# Thread: Find present equivalent value PW and FW in the cash flow

1. ## Find present equivalent value PW and FW in the cash flow

Hi.

This is the problem.

3. ## Re: Find present equivalent value PW and FW in the cash flow

Where does PW and FW come from? Should be PV (Present Value) and FV (Future Value).

FV = 100(1.12^4 + 1.12^3 + 1.12^2 + 1.12^1 + 1.12^0) = 635.28

PV = FV / 1.12^8 = 635.28 / 1.12^8 = 256.58

Pretty basic stuff: where were you stuck?

4. ## Re: Find present equivalent value PW and FW in the cash flow

In case this helps; what "it looks like":
Code:
Y  INTEREST BALANCE      DEPOSIT INTEREST BALANCE
0            256.58                           .00
1    30.79   287.37                           .00
2    34.48   321.85                           .00
3    38.63   360.48                           .00
4    43.25   403.73       100.00      .00  100.00
5    48.45   452.18       100.00    12.00  212.00
6    54.27   506.45       100.00    25.44  337.44
7    60.77   567.22       100.00    40.49  477.93
8    66.06   635.28       100.00    57.35  635.28