Business, 28.08.2021 01:30 Mypasswordishotdog11
On January 15, Year 5, Carr Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, Year 9, at an estimated cost of $2 million. Carr plans to make 4 equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, Year 5. Future value factors are as follows:
Future value of 1 at 10% for 5 periods
1.61
Future value of ordinary annuity of 1 at 10% for 4 periods
4.64
Future value of annuity in advance of 1 at 10% for 4 periods
5.11
Carr should make 4 annual deposits (rounded) of
A. $320,000
B. $431,000
C. $391,400
D. $500,000
Answers: 3
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On January 15, Year 5, Carr Corp. adopted a plan to accumulate funds for environmental improvements...
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