To compute future value (fv) of a single sum, use Table A1 in the appendix and the formula: fv = pv * factor. To find the present value (pv) of a known future amount, use Table A2 in the appendix and the formula pv = fv * factor.

Question 1: You invest $3000 for 8 years and expect to earn 9%, on average, per year. What is the fv ? Solve, using Table A1.

Question 2: You want to have $6000 eight years from today to purchase a G. Loomis fishing rod and a Van Staal fishing reel. You expect to earn 9%, on average. How much should you invest today to reach your target in 8 years ? Solve, using Table A2. Be sure to show the formula and your "plug-in's, then solve. Show all the steps in your work.

Fundamentals of Corporate Finance, 10th edition AUTHOR: Ross, Westerfield, Jordan