Future Value of an Annuity

Madison K Garcia

McDonald's major distribution partner, The Martin$-$Brower Company, needs at least $$1$ million to build a new warehouse in Medicine Hat $2$ years from today. To date, it has invested $$480,000\mathrm{.}00.$ If it continues to invest $$53,000\mathrm{.}00$ at the end of every quarter into a fund earning $6\mathrm{.}5\%$ quarterly, will it have enough money to build the warehouse $2$ years from now? How much money will it have?

The Martin$-$Brower Company's $$480,000\mathrm{.}00$ will have grown to and its $$53,000\mathrm{.}00$ deposits will have grown to for a total of Thus, it have enough money $2$ years from now.