For the cash flows shown in the diagram, determine the value of x and 2x that will make the future worth in year 8 equal to $100,000.
What will be an ideal response?
100,000 = x(F/A,10%,4)(F/P,10%,4) + 2x(F/A,10%,4)
100,000 = x(4.6410)(1.4641) + 2x(4.6410)
16.0769x = 100,000
x = $6220
2x = $12,440
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