Vaughn Manufacturing will invest $93000 every January 1st for
the next six years (2017 – 2022). If Vaughn will earn 14% on the
investment, what amount will be in the investment fund on December
31, 2022?
Value of investment fund on December 31, 2022 | $ 9,04,935.70 | |||||
Working: | ||||||
Future value of annuity of 1 | = | ((((1+i)^n)-1)/i)*(1+i) | Where, | |||
= | ((((1+0.14)^6)-1)/0.14)*(1+0.14) | i | 14% | |||
= | 9.730491366 | n | 6 | |||
Future value of cash flow | = | Annual cash flow | * | Future value of annuity of 1 | ||
= | $ 93,000 | * | 9.730491 | |||
= | $ 9,04,935.70 |
Get Answers For Free
Most questions answered within 1 hours.