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What will be the balance of plant expansion fund at December

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Question - Hooman Corp. is planning to build a new manufacturing plant on January 1, 2030. To provide cash need for the construction. Hooman Corp. will make ten annual contributions to a plant expansion fund starting December 31, 2020. The first four payments will be $300,000 each, next three payments will be $200,000 each, and the final three payments will be $100,000 each. Fund will earn interest of 10% until December 31, 2023. From January 1, 2024 to December 31, 2026, the interest rate will be 12%. Interest rate for the last three years will be 8%. What will be the balance of plant expansion fund at December 31, 2029?

Reference no: EM132516681

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