On January 1, 2007, Carly Company decided to begin accumulating a fund for asset replacement five years later. The company plans to make five annual deposits of $50,000 at 9% each January 1 beginning in 2007. What will be the balance in the fund, within $10, on January 1, 2012 (one year after the last deposit)? The following 9% interest factors may be used

A) $326,166
B) $299,235
C) $272,500
D) $250,000

Question

On January 1, 2007, Carly Company decided to begin accumulating a fund for asset replacement five years later. The company plans to make five annual deposits of $50,000 at 9% each January 1 beginning in 2007. What will be the balance in the fund, within $10, on January 1, 2012 (one year after the last deposit) ? The following 9% interest factors may be used

A) $326,166 
B) $299,235 
C) $272,500 
D) $250,000

Quizplus · Accepted Answer

$50,000 × (7.5233 - 1) = $326,166 or $50,000 × 5.9847 × 1.09

On January 1, 2007, Carly Company Decided to Begin Accumulating