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A company plans to make four annual deposits of $$6,750$ each to a special building fund. The fund$$s assets will be invested in mortgage instruments expected to pay interest at $12\%$ on the fund$$s balance.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Determine how much will be accumulated in the fund after four years under each of the following situations:

$1.$ The $$6,750$ annual deposit are made at the end of each of the four years and interest is compounded annually.

$2.$ The $$6,750$ annual deposit are made at the beginning of each of the four years and interest is compounded annually.

$3.$ The $$6,750$ annual deposit are made at the beginning of each of the four years and interest is compounded quarterly.

$4.$ The $$6,750$ annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year.

Required $1$

Table, Excel, or calculator function:

Deposit:

n $=$

i $=$

Fund balance

Required $2$

Table, Excel, or calculator function:

Deposit:

n $=$

i $=$

Fund balance

Required $3$

i $=$ n $=$ Deposit Fund Balance

First deposit $$6,750$

Second deposit $6,750$

Third deposit $6,750$

Fourth deposit $6,750$

$$0$

Required $4-$

Deposit Amount Number of Payments Interest left in Fund Fund Balance

$$6,750$

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