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Question
On January 1, 2017, Oriole Company decided to begin accumulating a fund for asset replacement five years later. The company plans to make five annual deposits of $63000 at 9% 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 9% interest factors may be used.
Present Value of Ordinary Annuity Future Value of Ordinary Annuity
4 periods. 3.2397. 4.5731
5 periods. 3.8897. 5.9847
6 periods 4.4859. 7.5233
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