Find the shortage in five years

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Reference no: EM131336126

Administrators at Bacon College are debating the construction of a new building to house the School of Business Administration. They have estimated the total amount needed at the time of construction starts in 5 years to be $21,300,000. The college already has $4,500,000 earning 6.5% per year that can be used to meet that goal.

(A) Find the future value of the $4,500,000

(B) Find the shortage in 5 years

(C) Find the amount that must be placed into a sunking fund earning 6.5% per year, to accumulate the additional funds needed.

Reference no: EM131336126

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