Question
Carman Dog Care Co. wants to finance a new animal shelter by making eight eight annual deposits into a fund earning 3% compounded annually. The
Carman Dog Care Co. wants to finance a new animal shelter by making eight eight annual deposits into a fund earning 3% compounded annually. The first four four deposits are to be $25,000 each and will be paid at the beginning of the next four four years. The last four four deposits are to be $26,000 each and will be paid at the beginning of the last four four years.
Requirement What is the cost of the new animal shelter?
(Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. Use the same method for all calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round intermediary currency computations and your final answer to the nearest cent, $X.XX.)
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