BobCat Inc. will deposit $20,000 in an 8% fund at the end of each year for 8 years beginning December 31, Year 1. What amount will be in the fund immediately after the last deposit?

FV= $198,456.07

Explanation:

Giving the following information:

Annual deposit= $20,000

Interest rate= 8%

Number of periods= 8 years

To calculate the future value after the last deposit, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {20,000*[(1.08^7) - 1]}  / 0.08 + 20,000

FV= 178,456.07 + 20,000

FV= $198,456.07

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.