Move $85,000 to year 1, subtract $42,000, and find the equivalent over 4 remaining years. A = [85,000(F/P,10%,1) - 42,000](A/P,10%,4) = [85,000(1.1000) - 42,000](0.31547) = $16,247

What will be an ideal response?




P = 40 + x(P/F,10%,1) + 40(P/A,10%,2)(P/F,10%,1) + x(P/F,10%,4) + 40(P/A,10%,2)(
P/F,10%,4)
300 = 40 + x(0.9091) + 40(1.7355)(0.9091) + x(0.6830) + 40(1.7355)(0.6830)
1.5921x = 300 – 40 - 63.110 – 47.414
x = $93.89

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