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What will be the balance in the fund on january 1

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Question

On January 1, 2017, Bramble Corp. decided to begin accumulating a fund for asset replacement five years later. The company plans to make five annual deposits of $72000 at 10% each January 1 beginning in 2017.

What will be the balance in the fund, on January 1, 2022 (one year after the last deposit)?

The following 10% interest factors may be used.

Present Value of

Ordinary Annuity

Future Value of

Ordinary Annuity

4 periods

3.1699

4.6410

5 periods

3.7908

6.1051

6 periods

4.3553

7.7156

Reference no: EM132325599

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