For the cash flows shown, find the future worth in (a) year 5, and (b) year 4. Assume an i of 10% per year.







What will be an ideal response?


(a) F 5 = 3000(F/A,10%,4)
= 3000(4.6410)
= $13,923
(b) F 4 = 3000[(F/A,10%,3) + (P/F,10%,1)]
= 3000[3.3100 + 0.9091]
= $12,657

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