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A Company just decided to save $27,000 a month for the next five years as a...

A Company just decided to save $27,000 a month 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 4.00% interest compounded monthly. It deposits the first $27,000 today. If the company had wanted to deposit an equivalent lump sum today, how much would it have had to deposit? (Note that this is annuity due)

a. $1,320,495.02

b. $1,470,961.78

c. $1,516,210.34

d .$1,588,534.50

e, $1,622,442.77

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Answer #1

I have answered the question using given information. Please get back to me for any clarfications.Hope this helps!

Answer: b. $1,470,961.78

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