Calculating FV of an uneven cash flow series

CFA Level I
#1

Hello all,

On page 114 of Schweser Quant Methods textbook there is a question asking you to compute the FV of an uneven cashflow series.

How can you compute this through a BAII Plus calculator without havnig to do all the individual Future Values? I assume there is a way, as there’s a shortcut for calculating PV of uneven cashflows.

Thanks,

#2

Calculate the PV of the cash flows, then the FV of that PV. Piece of cake.

#3

FV = PV * (1+i)^n

This a general compound interest relationship that works for any series of payments (single/multiple, level/non-level,etc.). Both the HP and the BA II can calculate just about any PV and then all you have to do is roll it up with n years’ interest.

#4

Enter the uneven cash flows using CF and find NFV(net future value). This option is available only in BA II plus professional