Harlan Corporation deposits $250,000 every June 30th and December 31st in a savings account (beginning...
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Accounting
Harlan Corporation deposits $250,000 every June 30th and December 31st in a savings account (beginning in the current year) for the next three years so that it can purchase a new piece of machinery at the end of three years. The interest rate is 4%. How much money will Harlan Corporation have at the end of three years?
Use the future value of an ordinary annuity factor table shown below to derive your answer.
Periods
1%
2%
3%
4%
1
1
1
1
1
2
2.01000
2.02000
2.03000
2.04000
3
3.03010
3.06040
3.09090
3.12160
4
4.06040
4.12161
4.18363
4.24646
5
5.10101
5.20404
5.30914
5.41632
6
6.15202
6.30812
6.46841
6.63298
7
7.21354
7.43428
7.66246
7.89829
8
8.28567
8.58297
8.89234
9.21423
9
9.36853
9.75463
10.15911
10.58280
10
10.46221
10.94972
11.46388
12.00611
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