Acceleron is planning future expansion with a new facility in Indianapolis. The company will make the move when its real estate sinking fund has a total value of $1.2 million. If the fund currently has $400,000 and the company adds $50,000 per year, how many years will it take for the account to reach the desired value? The fund earns interest at a rate of 10% per year.
Acceleron is planning future expansion with a new facility in Indianapolis. The company will make the move when its real estate sinking fund has a total value of $1.2 million. If the fund currently has $400,000 and the company adds $50,000 per year, how many years will it take for the account to reach the desired value? The fund earns interest at a rate of 10% per year.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Acceleron is planning future expansion with a new facility in Indianapolis. The company will make the move when its real estate sinking fund has a total value of $1.2 million. If the fund currently has $400,000 and the company adds $50,000 per year, how many years will it take for the account to reach the desired value? The fund earns interest at a rate of 10% per year.
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