Question

Sheffield Corp. will invest $94000 every January 1st for the next six years (2020 – 2025)....

Sheffield Corp. will invest $94000 every January 1st for the next six years (2020 – 2025). If Sheffield will earn 9% on the investment, what amount will be in the investment fund on December 31, 2025?

$459629.

$770840.

$421677.

$707194.

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Answer #1

Solution:-

Sheffield Corp. will invest $94000 every January 1st for the next six years (2020 – 2025).

Return: 9% on the investment.

Amount of Investment on December 31, 2025: Future Value after 6 years on December 31, 2025

Amount of Investment on December 31, 2025: $ 94,000 * (PVAF @ 9%, 6 years)

Amount of Investment on December 31, 2025: $ 94,000 * 4.485925

Amount of Investment on December 31, 2025: $ 421,677

Hence, the investment fund on December 31, 2025, is $421677.

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