Kelly Malone plans to have $48 withheld from her monthlypaycheck and deposited in a savings account that earns 12%annually, compounded monthly. If Malone continues with her plan fortwo and one-half years, how much will be accumulated in the accounton the date of the last deposit? (PV of $1,FV of $1, PVA of $1, andFVA of $1) (Use appropriate factor(s) from the tablesprovided. Round FVA factor to 4 decimal places.)
Periodic Cash Flow | x | f (FV of an OrdinaryAnnuity) | = | Total Accumulation | $48 | x | | = | | Table Values areBased on: | | | | | n | = | | | | i | = | | | | |
Starr Company decides to establish a fund that it will use 2years from now to replace an aging production facility. The companywill make a $107,000 initial contribution to the fund and plans tomake quarterly contributions of $55,000 beginning in three months.The fund earns 8%, compounded quarterly. (PV of $1, FV of $1, PVAof $1, and FVA of $1) (Use appropriate factor(s) from thetables provided. Round your "Future Value Factor" to 4 decimalplaces.) |
What will be the value of the fund 2 years from now? | | Table Values are Basedon: | | | | n = | | | | i = | | | | | Present Value | f (Future Value Factor) | Future Value | Initial Investment | | | | Periodic Investments | | | | Future Value of Fund | | | | | |
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