Present and future value tables of $1 at 9% are presented below. Claudine Corpor
ID: 2527820 • Letter: P
Question
Present and future value tables of $1 at 9% are presented below.
Claudine Corporation will deposit $6,100 into a money market sinking fund at the end of each year for the next five years. How much will accumulate by the end of the fifth and final payment if the sinking fund earns 9% interest?
$32,696.
$33,245.
$36,507.
$39,792.
PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1 1 0.91743 1.09000 0.91743 1.0900 1.0000 2 0.84168 1.18810 1.75911 2.2781 2.0900 3 0.77218 1.29503 2.53129 3.5731 3.2781 4 0.70843 1.41158 3.23972 4.9847 4.5731 5 0.64993 1.53862 3.88965 6.5233 5.9847 6 0.59627 1.67710 4.48592 8.2004 7.5233Explanation / Answer
Answer: Option C ($ 36507)
Explanation:
Given that claudine corporation will deposit $6100 into sinking fund for the next five years.
where sinking fund earns 9% interest.
Accumulated Value = Every year deposit amount * FVAF@(9%,5Y)
= $6100*5.9847
= $36506.67
=$36507
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.