Answer:
The correct answer is the equivalent amount is $139,059.41
Step-by-step explanation:
According to the scenario, the computation of the equivalent amount in year ten is shown below;
= $5,000 × (P/A, 10%,10) + $1,000 × (P/G, 10%,10)
= $5,000 × 6.1466 + $1,000 × 22.8913
= $30,723 + $22,891.30
= $53,614.30
Now the equivalent amount is
= $53,614.30 × (F/P, 10%,10)
= $53,614.30 × 2.5937
= $139,059.41
Hence, the equivalent amount is $139,059.41
