Exercise $5-12($Algo$)$ Future value; annuities $[$LO$5-7]$

A company plans to make four annual deposits of $$6,250$ each to a special building fund. The fund$$s assets will be invested in mortgage instruments expected to pay interest at $12\%$ on the fund$$s balance.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Determine how much will be accumulated in the fund after four years under each of the following situations:

The $$6,250$ annual deposit are made at the end of each of the four years and interest is compounded annually.

The $$6,250$ annual deposit are made at the beginning of each of the four years and interest is compounded annually.

The $$6,250$ annual deposit are made at the beginning of each of the four years and interest is compounded quarterly.

The $$6,250$ annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year.