How to get a rate of return
This is the problem:
In order to receive $12,000 at the end of 3 years and $10,000 a the end of 5 years,how much must be invested now if you can earn 14% rate of return?
a)12,978
b)8,100
c)13,290
d)32,054
This is my results:
I used 1.14 for year 1
Used 1.30 for year 2
Used 1.482 for year 3
Start year 1 year 2 year 3
12,978 14,794.93 16,871.40 19,233.40
8,100 9,234 10,530 12,004.20
13,290 15,150.60 17,277.00 19,695.78
32,054 36,541.56 41,6700.20 47504.03
None of the results give me the correct answer. Any help please