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Business, 19.02.2020 06:04 shadowsnake
On March 15, Year 1, Kathleen Corp. adopted a plan to accumulate $1,000,000 by September 1, Year 5. Kathleen plans to make 4 equal annual deposits to a fund that will earn interest at 10% compounded annually. Kathleen made the first deposit on September 1, Year 1. Future value and future amount factors are as follows:
Future value of $1 at 10% for 4 periods
1.46
Future amount of ordinary annuity of $1
at 10% for 4 periods
4.64
Future amount of annuity in advance of $1
at 10% for 4 periods
5.11
Kathleen should make 4 annual deposits (rounded) of
A. $250,000
B. $195,700
C. $684,930
D. $215,500
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Answers: 2
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On March 15, Year 1, Kathleen Corp. adopted a plan to accumulate $1,000,000 by September 1, Year 5....
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