Asked by Osano Enoch on May 31, 2024
Verified
A company is beginning a savings plan to purchase a new building.It will be saving $43,000 per year for the next 10 years.How much will the company have accumulated after the tenth year-end deposit,assuming the fund earns 9% interest?
Tenth Year-end Deposit
A deposit made at the end of the tenth year, often in the context of savings or investment plans.
- Calculate the future value of investments or savings, including those with regular contributions over time.
- Execute financial calculations using the concepts of semiannual and annual compounding interest.
- Investigate investment or borrowing contexts to make well-informed financial resolutions.
Verified Answer
BF
Brigith FloresMay 31, 2024
Final Answer :
$653,294.70
The FV factor on the Future Value of an Annuity table when n = 10 and i = 9% is 15.1929.
Future Value of an Annuity = Annuity * FV Factor
Future Value of an Annuity = $43,000 * 15.1929 = $653,294.70
The FV factor on the Future Value of an Annuity table when n = 10 and i = 9% is 15.1929.
Future Value of an Annuity = Annuity * FV Factor
Future Value of an Annuity = $43,000 * 15.1929 = $653,294.70
Learning Objectives
- Calculate the future value of investments or savings, including those with regular contributions over time.
- Execute financial calculations using the concepts of semiannual and annual compounding interest.
- Investigate investment or borrowing contexts to make well-informed financial resolutions.
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