6. Hydrex Mechanical Products is planning to set aside S160,000 now whenever it becomes necessary. If...

Question

Question

Answer 1

Answer #1

Here, P = 160,000, i = 4%. n = 3.5 * 4 = 14 quarters

Future Value = P(F/P, i, n)

= 160,000(F/P, 4%, 14)

= 160,000(1.7317)

= $277,072

Thus, the company will have $222,072 in its account

Answer 2

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