a.

P= 105, 000

i= 3.85%

Compounding Period= Annually

 

 

b. If you punch in the values you know in TVM-Solver, you are able to know the future amount which would be about $142050.02.  

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

c. Even when you calculate the future value by using Financial Application or Geometric Sequence, the answer stays the same as both of the equations are structured similarly.  When you are using Geometric Sequence, you set the principal value as 0th term, so the future value becomes the 9th term.  This makes exponents of both of the equations equivalent.  Also, original values are both on the equations, but expressed in a different way.  In Geometric Sequence, it is the value of 'a' which is the initial value.  In Finantial Application, it is the value of 'P' which is the principal value.  Moreover, common ratio on Geometric Sequence and interest rate on Finantial Application result in the same number.  Therefore, it can be said that Geometric Sequence and Finantial Application are closely related.