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Starr Company decides to establish a fund that it will use 4 years from now to replace an aging production facility. The company will make
Starr Company decides to establish a fund that it will use 4 years from now to replace an aging production facility. The company will make a $107.000 initial contribution to the fund and plans to make quarterly contributions of $57,000 beginning in three months. The fund earns 4%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar.) What will be the value of the fund 4 years from now? Answer is complete but not entirely correct. Table Values are Based on: 16 i = 3% Present Table Factor Future Value Value Initial Investment $ 107,000 1.6047X $ 171,703 Periodic Investments 57,000 20.1569 1,148,943 X Future Value of Fund $ 1,320,646
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