Cullumber

Corporation currently grows and sells fresh produce year$-$round in its homemade greenhouses. As the business is growing,

Cullumber

hopes to signifi cantly expand its number of greenhouses in

$7$

years.

Cullumber

has deposited$

$101,000$

into an investment account that will earn a

$3$

$\%$ annual rate of interest.

Cullumber

is also committed to depositing $

$9,700$

into the same account at the end of each of the next

$7$

years.

$1-$Assume now that

Cullumber

will make the $

$9,700$

deposits at the beginning of the next

$7$

years. Using the FV function in Excel, or a fi nancial calculator, calculate how much

Cullumber

will have in its account at the end of year

$7$

$.$

$($Do not roundintermediate calculations. Round fi nal answer to $2$ decimal places, e$.$g$.458,581\mathrm{.}25.)$

Future value

$2-$Cullumber

knows it needs $

$513,000$

in

$7$

years to purchase additional greenhouses. Assuming it will make annual deposits of $

$9,700$

into an account earning

$3$

$\%$ annual interest at the end of the next

$7$

years, use the PV function in Excel or afi nancial calculator to determine how much it must deposit today.

$($Do not round intermediate calculations. Round fi nal answer to $2$ decimal places, e$.$g$.458,581\mathrm{.}25.)$

Present value

$