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Please help me to solve this problem completely. Also, please include all steps so that I can follow and do it myself too. Thank you
Please help me to solve this problem completely. Also, please include all steps so that I can follow and do it myself too. Thank you so much !!
On January 1, year 1, Beal Corporation adopted a plan to accumulate funds for a new plant building to be erected beginning July 1, year 6, at an estimated cost of $1,200,000. Beal intends to make five equal annual deposits in a fund that will earn interest at 8% compounded annually. The first deposit is made on July 1, year 1. Present value and future amount factors are as follows: Present value of 1 at 8% for 5 periods Present value of 1 at 896 for 6 periods Future amount of ordinary annuity of 1 at 800 for 5 periods Future amount of annuity in advance of 1 at 8% for 5 periods 0.68 0.63 5.87 6.34 Beal should make five annual deposits (rounded) of $204,400 $151,200 $163,200 $189,300Step by Step Solution
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