Exercise B-17 (Algo) Future value of an amount plus an annuity LO P2, P4 Starr Company decides to establish a fund that it will use 3 years from now to replace an aging production facility. The company will make a $110,000 initial contribution to the fund and plans to make quarterly contributions of $51,000 beginning in three months. The fund earns 16%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar. What will be the value of the fund 3 years from now? Answer is complete but not entirely correct. Table Values are Based on: n = ¡= 12 16% × Present Table Factor Future Value Value Initial Investment Periodic Investments Future Value of Fund $ 110,000 1.7908 $ 196,988 × 51,000 6.8941 x 351,599 X $ 548,587
Exercise B-17 (Algo) Future value of an amount plus an annuity LO P2, P4 Starr Company decides to establish a fund that it will use 3 years from now to replace an aging production facility. The company will make a $110,000 initial contribution to the fund and plans to make quarterly contributions of $51,000 beginning in three months. The fund earns 16%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar. What will be the value of the fund 3 years from now? Answer is complete but not entirely correct. Table Values are Based on: n = ¡= 12 16% × Present Table Factor Future Value Value Initial Investment Periodic Investments Future Value of Fund $ 110,000 1.7908 $ 196,988 × 51,000 6.8941 x 351,599 X $ 548,587
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise B-17 (Algo) Future value of an amount plus an annuity LO P2, P4
Starr Company decides to establish a fund that it will use 3 years from now to replace an aging production facility. The company will
make a $110,000 initial contribution to the fund and plans to make quarterly contributions of $51,000 beginning in three months. The
fund earns 16%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
Note: Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the
nearest whole dollar.
What will be the value of the fund 3 years from now?
× Answer is complete but not entirely correct.
Table Values are Based on:
n =
i =
12
16% ☑
Present
Table Factor
Future Value
Value
Initial Investment
Periodic Investments
Future Value of Fund
$
110,000
1.7908 $
196,988 ×
51,000
6.8941 x
351,599 x
$
548,587
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