2. 2.64 The future worth in year 10 of an arithmetic gradient cash flow series for years 1 through 10 is $500,000.

(a) If the arithmetic gradient, G, is +$3000 per year, determine the cash flow, A, in year 1 at an interest rate of 10% per year. (b)

(Advanced exercise) Use the GOAL SEEK tool to determine the base amount, A, of the series. (Hint: Refer to Appendix A to learn how to use this spreadsheet tool and make a guess that A = $10,000 initially.)