One year ago, the Jenkins Family Fun Center deposited $4,400 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $6,200 to this account. They plan on making a final deposit of $8,400 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 9 percent?

One year ago, the Jenkins Family Fun Center deposited $4,400 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $6,200 to this account. They plan on making a final deposit of $8,400 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 9 percent?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 40P

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