Question: 02.05-PR030 Develop a mathematical relationship for finding the accumulated amount F at the end of n years of a geometric series where the interest is

02.05-PR030 Develop a mathematical relationship for finding the accumulated amount F at the end of n years of a geometric series where the interest is i%. Put differently, you already have access to a (P|G i%,n) factor. Develop an (F|

i%,n) factor.

a. Express the (F|G i%,n) factor in terms of the existing factors listed in the tables of Appendix A.

b. Express the (F|G i%,n) factor in terms of i and n.

c. Demonstrate that your answers to

(a) and

(b) are equivalent by calculating the value of F using a first payment of $0, increasing by $1,000 each year with n = 5 and i = 10% for each approach.

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