McCarthy Construction is trying to bring the company-funded portion of its employee retirement fund into compliance with HB-301. The company has already deposited $500,000 in each of the last 5 years. If the company increases its deposits beginning in year 6 by 15% per year each year through year 20, how much will be in the fund immediately after the last deposit, provided the fund grows at a rate of 12% per year? Solve using (a) tabulated factors, and (b) a spreadsheet.
McCarthy Construction is trying to bring the company-funded portion of its employee retirement fund into compliance with HB-301. The company has already deposited $500,000 in each of the last 5 years. If the company increases its deposits beginning in year 6 by 15% per year each year through year 20, how much will be in the fund immediately after the last deposit, provided the fund grows at a rate of 12% per year? Solve using (a) tabulated factors, and (b) a spreadsheet.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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McCarthy Construction is trying to bring the
company-funded portion of its employee retirement
fund into compliance with HB-301. The
company has already deposited $500,000 in each
of the last 5 years. If the company increases its
deposits beginning in year 6 by 15% per year
each year through year 20, how much will be in
the fund immediately after the last deposit, provided
the fund grows at a rate of 12% per year?
Solve using (a) tabulated factors, and (b) a
spreadsheet.
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