In order to establish a contingency fund to replace equipment after unexpected breakdowns, a manufacturer of thin-wall

Question:

In order to establish a contingency fund to replace equipment after unexpected breakdowns, a manufacturer of thin-wall plastic bottles plans to deposit $100,000 now and $150,000 two years from now into an investment account. Assuming the account grows at 15% per year, the equation that does not represent the future value of the account in year 5 is:

(a) F = 100,000(F∕P,15%,5) + 150,000(F∕P,15%,3)

(b) F = [100,000(F∕P,15%,2) + 150,000] (F∕P,15%,3)

(d) F = 100,000(F∕P,15%,5) + 150,000(F∕P,15%,2)

Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...

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