Question

O You skipped this question in the previous attempt. Check my work How much money would be accumulated 14 years from now from deposits of $17,000 per year for 5 consecutive years, starting 2 years from now, if the interest rate is 9% per year. The amount that would be accumulated is determined to be $

Answer 1

FV = CF * FVF(r%, n)

Part A:

Year	CF	Gap	FVF@9%	FV of CF
2	$ 17,000.00	12	2.8127	$    47,815.30
3	$ 17,000.00	11	2.5804	$    43,867.25
4	$ 17,000.00	10	2.3674	$    40,245.18
5	$ 17,000.00	9	2.1719	$    36,922.19
6	$ 17,000.00	8	1.9926	$    33,873.56
FV of CFs				$ 2,02,723.48

Part B:

Year	CF	Gap	FVF@12%	FV of CF
0	$      200.00	15	5.4736	$       1,094.71
1	$      200.00	14	4.8871	$          977.42
2	$      200.00	13	4.3635	$          872.70
3	$      200.00	12	3.8960	$          779.20
4	$      300.00	11	3.4785	$       1,043.56
5	$      300.00	10	3.1058	$          931.75
6	$      300.00	9	2.7731	$          831.92
FV of CFs				$      6,531.27

Pls comment, if any further assistance is required.