Question
On January 1, 2025, Sheridan Company decided to begin accumulating a fund for asset replacement five years later. The company plans to make five annual
On January 1, 2025, Sheridan Company decided to begin accumulating a fund for asset replacement five years later. The company plans to make five annual deposits of $56000 at 8% each January 1, beginning in 2025.
What will be the balance in the fund, on January 1, 2030 (one year after the last deposit)?
The following 8% interest factors may be used.
| Present Value of Ordinary Annuity | Future Value of Ordinary Annuity | |
| 4 periods | 3.3121 | 4.5061 |
| 5 periods | 3.9927 | 5.86660 |
| 6 periods | 4.6229 | 7.33593 |
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
