Question
Harlan Corporation deposits $250,000 every June 30th and December 31st in a savings account (beginning in the current year) for the next three years so
Harlan Corporation deposits $250,000 every June 30th and December 31st in a savings account (beginning in the current year) for the next three years so that it can purchase a new piece of machinery at the end of three years. The interest rate is 4%. How much money will Harlan Corporation have at the end of three years?
Use the future value of an ordinary annuity factor table shown below to derive your answer.
| Periods | 1% | 2% | 3% | 4% |
| 1 | 1 | 1 | 1 | 1 |
| 2 | 2.01000 | 2.02000 | 2.03000 | 2.04000 |
| 3 | 3.03010 | 3.06040 | 3.09090 | 3.12160 |
| 4 | 4.06040 | 4.12161 | 4.18363 | 4.24646 |
| 5 | 5.10101 | 5.20404 | 5.30914 | 5.41632 |
| 6 | 6.15202 | 6.30812 | 6.46841 | 6.63298 |
| 7 | 7.21354 | 7.43428 | 7.66246 | 7.89829 |
| 8 | 8.28567 | 8.58297 | 8.89234 | 9.21423 |
| 9 | 9.36853 | 9.75463 | 10.15911 | 10.58280 |
| 10 | 10.46221 | 10.94972 | 11.46388 | 12.00611 |
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Accounting Ethics
Authors: Ronald F. Duska, Brenda Shay Duska, Kenneth Wm. Kury
3rd Edition
1119118786, 9781119118787
