Starr Company decides to establish a fund that it will use 2 years from now to replace an aging production facility. The company will make a $101,000 initial contribution to the fund and plans to make quarterly contributions of $57,000 beginning in three months. The fund earns 12%, compounded quarterly. (PV of $1,FV of $1,PVA of $1, andFVA of $1)(Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answer to the nearest whole dollar.)

What will be the value of the fund 2 years from now?

Table Values are Based on " Present Value Table Factor Future Value Initial Investment Periodic Investments Future Value of FundTABLE B. 1" Present Value of 1 P = 1/ 1 1 + i'm` 0.9901 0. 9804 0. 9709 0. 951.5 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091/ 0. 8920 0. 9803 0.9512 0. 9426 0.9245 0.9070 0. 8734 0.8573 0 . 8417 0. 7972 0. 7561 0.9705 2.9423 0.9151 0.8.890 0.86.38 2.8396 0. 8 163 0. 7938 0. 7727 0. 7513 0. 71 10 0. 5.57.5 0. 9610 0.9238 0. 8:885 0.8548 0. 8227 0. 7921 0. 7629 0. 7350 0. 708 4 0.6.8.30 0. 6355 0.5718 0.9515 0.9057 0 . 8526 0.8210 0 . 7835 0 . 7473 0. 7130 0.6805 0.5499 0.6205 0. 5674 0. 4972 0.9420 0. 8 8.80 0. 8:375 0. 7903 0. 7452 0. 7050 0. 5653 0. 5.302 0.5963 0.56.45 0. 5065 0.9327 0. 8705 0. 81.31 0. 7590 0.7107 0. 5651 0. 6227 0.58:35 0. 5470 0.51.32 0. 4523 0. 3750 0.923.5 0. 85.35 0. 7894 0. 7307 0. 5274 0. 3260 8:929'0 0.5820 0.5403 0. 5019 0. 4565 0. 40.39 0.9143 0. 8368 0. 7564 0. 7025 0.6446 0.5919 0.5435 0.50.02 0. 4504 0. 4241 0 . 3605 0. 28:43 0.9053 0. 8203 0.7441 0. 6750 0. 5139 0.55.8:4 0. 508.3 0. 4532 0. 4224 0.3855 2. 3220 0. 2472 0. 8963 0. 8043 0. 7224 0. 6495 0.58:47 0. 5268 0. 4751 0. 4289 0. 3875 0. 3505 0 . 2875 0. 2145 0. 8.874 0. 7014 0.5245 0.5568 0. 4970 0.4440 0. 3971 0. 35.55 0. 3186 0. 2567 0. 1869 0.8787 0. 7730 2.6810 0.50.05 0.5303 2. 468.8 0. 4150 0. 3577 0. 3262 0. 2897 0. 2292 0. 1625 14 0.8700 0. 7579 0.651 1 0.5775 0.5051 0. 4 423 0. 3878 0. 3405 0. 2992 0. 2045 0. 1413 15 0 . 8613 0. 7430 0.6419 0.5553 0.4810 0. 4173 0.3524 0. 3152 0 . 2745 0. 2394 0 . 1827 0 . 1229 0. 8528 0. 7284 0. 53.39 0.4581 0. 39.36 0.3.387 0. 2919 0. 2519 0. 2175 0. 1631 0. 1050 0.8:4 44 0. 7142 2.6050 0.51.34 0. 435.3 0.3714 0. 3165 0. 2703 0. 231 1 0. 1978 0. 14515 0.8:360 0. 5874 0. 4935 0. 415.5 0. 3503 0. 2959 0. 2502 0. 2120 0. 1799 0. 1300 O. OBOB 0. 8277 0. 6.864 0.5703 0. 4745 0. 3.305 0. 2765 0. 2317 0. 1945 0. 1535 0. 1 161 0. 8195 0. 6730 0.55.37 0. 456.4 0. 3759 0. 31 18 0. 258.4 0. 2145 0. 178:4 0. 1486 0. 1037 0.05 1 1 25 0. 77.90 0.6095 0. 4776 0. 3751 0. 295.3 0. 23:30 0. 18:42 0. 1450 0. 1 160 2.0923 0. 058.8 0.0304 30 0. 7419 0.5521 0. 4120 0. 308.3 0. 2314 0. 1741 0. 1314 0.09.94 0.0754 0.0573 0.03.34 0.0151 35 0. 7059 0.5000 0. 35.54 0. 2534 0. 1813 0 . 1301 0.0937 0. 0675 0.0490 0.0356 0. 0189 0.0075 40 0. 5717 2.4529 2. 3065 0. 2083 0. 1420 0.0972 0.OGGB 0. 0450 2.0318 0.0221 0.0037 * Used to compute the present value of a known future amount. For example :"How much would you need to invest today at IN` compounded semiannually to accumulate $5. AND in { years From today ?' Using the factors of * = 12 and i = 54 (1 2 semiannual periods and a semiannual rate of 57 ;, the factor is O 5SEB. You would need to invest $2. 784 today It's. `^ * 0.5 5`BYTABLE B.2 Future Value of 1 f= (1 +i)" Rate 1% 3% 495 5% 6% 7% 8% 9% 10% 12% 15% O 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0200 1.0300 1.0500 1.0600 1.0700 1.0800 1.0900 1.1000 1.1200 1.1500 1.0201 1.0404 1.0609 1.0816 1.1025 1.1236 1.1449 1.1664 1.1881 1.2100 1.2544 1.32 m 1.0303 1.0612 1.0927 1.1576 1.1910 1.2250 1.2597 1.2950 1.3310 1.5209 1.0406 1.0824 1.1255 1.1699 1.2155 1.2625 1.3108 1.4116 1.5735 1.7490 Un 1.0510 1.1041 1.1593 1.2167 1.2763 1.3382 1.4026 1.5386 1.6105 1.7623 2.0114 1.1262 1.1941 1.3401 1.4185 1.5007 1.6771 1.7716 1.9738 1.0721 1.1487 1.3159 1.4071 1.5036 1.6058 1.8280 2.2107 2.6600 1.0829 1.1717 1.2668 1.3686 1.4775 1.5938 1.8509 1.9926 2.1436 2.4760 3.0590 1.0937 1.1951 1.3048 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.7731 3.5179 10 1.1046 1.2190 1.3439 1.6289 1.7908 2.1589 2.3674 2.5937 3.1058 4.0456 11 1.2434 1.3842 1.5395 1.7103 2.1049 2.3316 2.5804 2.8531 3.4785 4.6524 12 1.1268 1.2682 1.4258 1.7959 2.2522 2.5182 2.8127 3.1384 3.8960 1.2936 1.4685 1.6651 1.8856 2.1329 2.4098 2.7196 3.0658 3.4523 4.3635 6.1528 14 1.1495 1.3195 1.5126 1.9799 2.2609 2.5785 2.9372 3.3417 3.7975 4.8871 7.0757 15 1.1610 1.3459 1.5580 1.8009 2.0789 2.3966 3.1722 3.6425 4.1772 5.4736 8.1371 16 1.1726 1.3728 1.6047 1.8730 2.1829 2.5404 3.4259 3.9703 4.5950 6.1304 17 1.1843 1.4002 1.6528 2.2920 2.6928 3. 1588 3.7000 4.3276 5.0545 6.8660 10.7613 18 1.1961 1.4282 1.7024 2.4066 2.8543 3.3799 3.9960 4.7171 5.5599 7.6900 12.3755 19 1.2081 1.4568 1.7535 2.5270 3.0256 3.6165 4.3157 5.1417 6.1159 8.6128 14.2318 20 1.2202 1.4859 1.8061 2.1911 2.6533 4.6610 5.6044 6.7275 9.6463 16.3665 25 1.6406 2.0938 2.6658 3.3864 4.2919 5.4274 6.8485 8.6231 10.8347 17.0001 32.9190 30 1.3478 1.8114 2.4273 3.2434 4.3219 7.6123 10.0627 13.2677 17.4494 29.9599 66.2118 35 1.4166 1.9999 2.8139 5.5160 7.6861 10.6766 14.7853 20.4140 28. 1024 52.7996 133.1755 40 1.4889 2.2080 3.2620 4.8010 7.0400 10.2857 14.9745 31.4094 45.2593 93.0510 267.8635 Used to compute the future value of a known present amount. For example: What is the accumulated value of $3,000 invested today at 8%% compounded quarterly for 5 years? Using the factors of n = 20 and i = 2% (20 quarterly periods and a quarterly interest rate of 2%), the factor is 1.4859. The accumulated value is $4,457.70 ($3,000 x 1.4859).( 1 + 1 ) ^ TABLE B. 3+ Fresent Value of an Annuity' Of " 0.990 1 0.98.04 0.9615 0. 9524 0.9434 0. 9345 0.9259 0.9174 0.9091 0.8929 0. 8695) 1.9704 1. 9415 1.91.35 1.8.861 1. 8594 1.8334 1. 8080 1.7833 1.7591 1. 735.5 1. 6901 1. 5257 2.9410 2.8.839 2.8286 2.7751 2.7232 2.6730 2.6243 2.5771 2.5313 2.4018 2. 2832 3.9020 3.8077 3.7171 3.5290 3.5450 3.4651 3.3872 3.3121 3. 2397 3. 1695 3.0373 2.8550 4.8534 4. 7135 4.5797 4.4518 4.3295 4. 2124 4 . 10.02 3.9927 3.8 897 3. 790.8 3.6048 3.3522 5. 795.5 5. 5014 5. 4172 5. 2421 5.0757 4.9173 4. 7565 4.6229 4. 4859 4. 35.53 4. 9114 3.78:45 5. 7282 5.4720 6. 23:03 5.0.021 5. 78:54 5.5.8:24 5. 3893 5. 2054 5. 03.30 4. 868. 4 4.5638 4. 1604 7. 6517 7.325.5 7.0197 5.7327 5. 4532 5. 2098 5. 9713 5. 7456 5.53:48 5. 3.349 4. 9675 4.4873 8.56,60 8. 1622 7. 78.5 1 7.4353 7. 1078 6. 8017 6.5152 5. 2469 5.9952 5. 7590 5.3282 4.7716 9.4713 8.9826 8.53:02 8. 1109 7.7217 7. 3601 7.0235 6.7101 5. 4177 5. 14:45 5. 6502 5. 018 8 10.3676 9. 7858 9. 2526 8.3:064 7. 8.869 7.4987 7. 1390 5. 8:052 6. 4951 5. 9377 5. 23:37 1 1.25.5 1 10.5753 9.9540 9. 3851 8.85.33 3.3838 7.9427 7.5361 7. 1607 6. 8137 5. 1944 5. 4205 12. 13.37 1 1. 3484 9.9856 9.3935 8. 8527 8.3577 7.9038 7.4869 7 . 1034 5.4235 5.58.31 14 13.0037 12.1052 1 1. 295 1) 10.5031 9.8985 9. 2950 8.745.5 8.2442 7. 7862 7. 3567 5.6282 5. 7245 15 1.3. 8651 12.8493 1 1.9379 1 1 . 1 184 10.3797 9.7122 9. 1079 8.5595 8.0607 7.6:051 5.8109 5. 8:474 14.7179 13.5777 12.561 1 1 1.5523 10. 8378 10.1050 9. 4456 8.8514 8.3126 7.8237 5.9740 5.95.42 14.2919 1.3. 156 1 12. 1657 1 1. 2741 10.4773 9. 75.32 9. 1216 8.5435 8. 0216 7. 1 195 6. 0472 18 15.3983 14.9920 13.75.35 12.5593 11. 5896 10.8275 10.0591 9.3719 8.75.50 8.2014 6. 1280 19 17 .2250 14.3238 13. 13.39 12.0853 1 1. 1581 10.3.350 9. 60.35 8.9501 7. 3658 6. 1982 20 18.0456 16.3514 14. 8775 13.5903 12.4522 1 1. 4695 10.5040 9. 8181 9. 1285 8.51.35 7. 4694 5. 2593 25 22.0232 19.5235 17.4131 15. 5221 14.0939 12.7834 1 1.65.35 10.6748 9.8220 9.0770 7.8431 6.4541 30 22.3965 19. 60.04 17 . 2920 15. 3725 13. 7648 12.4090 10. 27.37 9.4269 5.5,560 35 29.4086 24.9985 21.4872 18. 5645 16.3742 14.4982 12.0477 11. 6545 10.5658 9. 5442 8.175.5 5. 5165 40 32. 8:347 23. 1148 19. 7928 17 .1591 15.0463 13.3317 11.9245 9. 7791 8. 2438 6.5:418 " Used to calculate the present value of a series of equal payments made at the end of each period . For example : What is the present value of $ 2. OHIO PER Year for 10 years assuming* an annual interest rate of $7. Forla = 10. 1 = 971, the PV factor is 5. 4 ITT. {], AND PET VEST for 10 years is the Equivalent of $ 17. 875 Way ($2. 0^ * 5. + ITTY