 #1
 31
 0
Homework Statement
Hello!
Revising geometric series, I have understood that I have the following issue  I have read again about these series and, please, take a look at what I have gotten as a result (picture attached).
If I calculate a future cash flow, that is I take, for example, a = 0,5 (it can be 100, 5 or any other number), r = 0.5 (also can be any other number), n = 10 (same), I get completely different results if I use the sum of geometric series and the future value calculation. Why? In all these cases I compute the sum of a multiplied by r within an n period.
I would be grateful for your help  I obviously miss some basic understanding.
PS: I have tried to paste a picture within this text, the program did not allow that; so I have to upload it.
Homework Equations
The Attempt at a Solution
Attachments

18 KB Views: 405