How much sinking fund balance could Halilikaw Co expect

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Problem - On January 1, 20x1, Halilikaw Co. makes a one-time contribution of 1,000,000 to a sinking fund that earns compounded interest of 12% per annum. Relevant future value factors are as follows:

FV of 1 @ 12%, n=10 3.10585

FV of an ordinary annuity of 1 @ 12%, n=10 17.54874

FV of an annuity due of 1 @ 12%, n=10 19.65458

Required - How much sinking fund balance could Halilikaw Co. expect to accumulate in 10-years' time?

Reference no: EM132991505

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