Question 1 5 pts Given the cash flow diagram below evaluate

Question 1 5 pts Given the cash flow diagram below, evaluate the value of \"A\" if the \"F\" value is $24.000 for an interest rate of 7%. ?? 4A

Solution

Future Value of investents: Year Investment Future Value of Investment of 1 Future Value of Investment a b c=1.07^(5-a) d=b*c 1 A                           1.3108                   1.3108 A 2 2A                           1.2250                   2.4501 A 3 3A                           1.1449                   3.4347 A 4 4A                           1.0700                   4.2800 A                 11.4756 A Now, As per question,                         11.4756 A = $       24,000 or, A = $   2,091.40 Thus, Value of A $ 2,091.40