Present and future value tables of $1 at 9% are presented below.

-Claudine Corporation will deposit $5,000 into a money market sinking fund at the end of each year for the next five years. How much will accumulate by the end of the fifth and final payment if the sinking fund earns 9% interest?
A) $32,617.
B) $29,924.
C) $27,250.
D) $26,800.

Question

Present and future value tables of $1 at 9% are presented below.

-Claudine Corporation will deposit $5,000 into a money market sinking fund at the end of each year for the next five years. How much will accumulate by the end of the fifth and final payment if the sinking fund earns 9% interest?
A) $32,617. 
B) $29,924. 
C) $27,250. 
D) $26,800.

Quizplus · Accepted Answer

FVA = $5,000 × 5.9847* = $29,924
*FVA of $1: n = 5; i = 9%

Present and Future Value Tables of $1 at 9% Are