On January 15, 2020, Bonita Industries adopted a plan to accumulate funds for environmental improvements beginning July 1, 2024, at an estimated cost of $8760000. Bonita plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2020. Future value factors are as follows: Future value of 1 at 10% for 5 periods Future value of ordinary annuity of 1 at 10% for 4 periods Future value of annuity due of 1 at 10% for 4 periods Bonita should make four annual deposits of $1558441. O $1714286. O $2190000. $1887930. 1.61 4.64 5.11
On January 15, 2020, Bonita Industries adopted a plan to accumulate funds for environmental improvements beginning July 1, 2024, at an estimated cost of $8760000. Bonita plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2020. Future value factors are as follows: Future value of 1 at 10% for 5 periods Future value of ordinary annuity of 1 at 10% for 4 periods Future value of annuity due of 1 at 10% for 4 periods Bonita should make four annual deposits of $1558441. O $1714286. O $2190000. $1887930. 1.61 4.64 5.11
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:On January 15, 2020, Bonita Industries adopted a plan to accumulate funds for environmental improvements beginning July 1,
2024, at an estimated cost of $8760000. Bonita plans to make four equal annual deposits in a fund that will earn interest at 10%
compounded annually. The first deposit was made on July 1, 2020. Future value factors are as follows:
Future value of 1 at 10% for 5 periods
Future value of ordinary annuity of 1 at 10% for 4 periods
Future value of annuity due of 1 at 10% for 4 periods
Bonita should make four annual deposits of
$1558441.
O $1714286.
O $2190000.
$1887930.
1.61
4.64
5.11
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