Alvah Corporation currently grows and sells fresh produce year-round in its homemade trailers. As the business is growing, Alvah hopes to significantly expand its number of trailers in 5 years. Alvah has deposited $100,000 into an investment account that will earn a 6% annual rate of interest. Alvah is also committed to depositing $10,000 into the same account at the end of each of the next 5 years.

Instructions

1. Calculate how much J&L will have in its account at the end of 5 years.
2. Assume now that Alvah will make the $10,000 deposits at the beginning of the next 5 years. Calculate how much Alvah will have in its account at the end of year 5.
3. Alvah knows it needs $500,000 in 5 years to purchase additional trailers. Assuming it will make annual deposits of $10,000 into an account earning 6% annual interest at the end of the next 5 years, calculator to determine how much it must deposit today.