For each situation, compute the required amount using the tables in this appendix.

1. XS Technologies Inc.'s operations are generating excess cash that will be invested in a special fund. During 2017, XS Technologies invests $12,000,000 in the fund for a planned advertising campaign for a new product to be released six years later, in 2023. If XS Technologies's investments can earn 5 percent each year, how much cash will the company have for the advertising campaign in 2023?

2. XS Technologies Inc. will need $20 million to advertise a new product in 2019. How much must XS Technologies invest in 2017 to have the cash available for the advertising campaign? XS Technologies's investments can earn 5 percent annually.

3. Explain the relationship between your answers to (1) and (2).