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The answer must include PAINFG and the cash flow diagrams.

P = Present value (this value is not used in this problem) A = Annuity; this is the value that is given in this problem i = Effective interest rate n = Number of payments F = Future value; this is the value that we want to find in this problem (F = ?) G = Gradient value (this value is not used in this problem)

1. The City of Boca Raton is expected to see growth of 5% in population over the next 5 years in its utility. FPL says power costs will rise 2%/yr over that period. If the City utilitys power cost is $450,000/year, what should the projected budget be in 5 years?