Lucas will receive one time cash flows of 7100, 8700 and 12500 at the end of years 1,2, and 3 respectively. what’s is the future value of these cash flows at the end of year five if he interest rate is 9%?

the answer is a i belaeve atleast thats what my calculator just gfave me

step-by-step explanation:

we have three similar triangles, because each has a right angle and shares an angle.   let's write the angles in order: opposite to short leg, long leg, hypotenuse.

cab similar to bad similar to cbd

or as ratios,

ca: ab: cb = ba: ad: bd = cb: bd: cd

we also know

ac = ad + cd

(ad+cd): ab: cb = ba: ad: bd = cb: bd: cd

(ad+cd)/cb=cb/cd

we have cb=6, ad=5 and seek x=cd.

we reject the negative root and conclude x=4

answer: 4