Question

The Ajax Co. just decided to save $15,000 a year for the next five years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pays 3.25% interest. It deposits the first $15,000 today. How much would the company end up with, in this saving account, at the end of the 5 years? Please show eith excel

		90,000
		97,846.40
		97,580.55
		80,235.03
		82,637.20

Answer 1

- Ajax co will save $15,000 per year starting from today into saving account for next 5 years.

Calculating the Future Value of saving account at the end of year 5 using Excel Future value function:-

So, the company end up with, in this saving account, at the end of the 5 years is $82,637.20

Option 5