Question

9) Miller's Hardware plans on saving $42,000, $54,000 and $58,000 at the end of each year for the next three years, respectively. How much will the firm have saved at the end of the three years if it can earn 4.5% on its savings?

Explain your work

Answer 1

Year	Cash Flow	Calculations	Future Value
1	$       42,000	=$42000*1.045^2	$     45,865.05
2	$       54,000	=$54000*1.045^1	$     56,430.00
3	$       58,000	=$58000*1.045^0	$     58,000.00
Future Value			$ 1,60,295.05