Answer:
FV= $6,616.38
Explanation:
Giving the following information:
Annual cash flow= $500
Number of periods (n)= 8
Interest rate= 14%
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {500*[(1.14^8) - 1]} / 0.14
FV= $6,616.38
