I was wondering if someone could help me with a question that I'm having trouble understanding, I did most of it and there is only one portion (Part b) that I need help with. I guess because it is receiving not invensting. I've attached the tables for review. Thanks a lot!

a. To determine the future amount of $20,000 is invested for 10 years, at 6 percent interest, compounded annually. (Round your FV factor to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Future value $ 35820

b. To determine the future amount of $100,000 is to be received five years from today, at 10 percent annual interest. (Round your FV factor to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Future value $

c. To determine the future amount of $10,000 is invested in a fund at the end of each of the next 10 years, at 8 percent interest, compounded annually. (Round your FV factor to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Future value $ 144870

d. To determine the future amount of $50,000 is invested initially, plus $5,000 is invested annually at the end of each of the next three years, at 12 percent interest, compounded annually. (Round your FV factor to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Future value $ 87120

Problem (b) doesn't specify when the future value is to be evaluated - is it 5 years from now, or some other time? Are you sure you copied the question completely and accurately? Or perhaps they want you to calculate "present value" even though it asked for "future value?"

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Originally Posted by ebaines

Problem (b0 doesn't specify when the future value is to be evaluated - is it 5 years from now, or some other time? Are you sure you copied the question completely and accurately? Or perhaps they want yuo to calculate "present value" even though it asked for "future value?"

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I have tried everything I could think of and it every time I come up with a solution it's the wrong answer. I did calculate the future value using both tables just in case but no luck. I have tried everything but failed. And YES all the numbers and the questions are accurate!

Thanks a lot for your reply!

Have you tried $100,000? That's the future value in 5 years of a gift of $100,000 you will receive in 5 years.

For question B. use table FA-1 to find the value of 10% in five years (1.611). Then divide the future amount ($100,000) by the factor. This will give you the begging value. X = 100,000/1.611


$62,073