Chapter 2: Multiple Cash Flows
Chapter 2: Multiple Cash Flows
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In the previous chapter, we learned how to calculate the present value and future value of a single cash flow.
In this chapter, we will march to the next level: multiple cash flows coming at different time points. And we will deal with how to find the present value and future value of them.
We will also meet some special patterns of multiple cash flows. After that, we will end this chapter with how to correctly convert interest rates.
As a matter of fact, you might have already met some of the special of the multiple cash flow patterns more than you think.
In our daily life, these some patterns include, but not limited to, your credit card bills, you pay checks, and most importantly, your mortgage payments of your car and your house.
We will talk more about it later this chapter by going through an example.
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