Tipson Corporation will invest €30,000 every January 1st for the next six years (2018 - 2023). If Linton will earn 12% on the investment, what amount will be in the investment fund on December 31, 2023?

Question

Quizplus · Accepted Answer

To calculate the amount in the investment fund on December 31, 2023, we need to use the future value formula:
FV = PMT x (((1 + r)^n - 1) / r), where
PMT = €30,000 (the amount invested each year)
r = 12% (the annual interest rate)
n = 6 (the number of years)

Plugging in the values, we get:
FV = €30,000 x (((1 + 0.12)^6 - 1) / 0.12) = €272,670. Therefore, the answer is D.

Tipson Corporation Will Invest €30,000 Every January 1st for the Next