Hi.

This is the problem.

I tried to find the FW first. I see the problem as "I deposite an initial money PW, and on the 4th, 5th, 6th and 7th I deposited $100". How much do I get at the end of the eighth year with i = 0.12.

That's how I interpret it.

I started by finding PW

$\displaystyle \frac{100}{1.12^{4}} + \frac{100}{1.12^{5}} + \frac{100}{1.12^{6}} + \frac{100}{1.12^{7}}$

which gives me 63.55 + 45.56 + 50.66 + 45.23 = 205. The outflow on is 40.39.

Either using 205 or 205-40.39, and then multiple that by (1 + 0.12) ^ -8 to get the PW, I either get 82.79 or 66.4832.

I kinda have the answer. I think the PW is 175.8 and FW is 935.28.

How do I get PW? What's wrong with my calculation?

Thanks