90.2K

Verified Solution

Link Copied!

Sunland Corporation currently grows and sells fresh produce year-round in its homemade greenhouses. As the business is growing, Sunland hopes to significantly expand its number of greenhouses in 6 years. Sunland has deposited $110,000 into an investment account that will earn a 9% annual rate of interest. Sunland is also committed to depositing $10,600 into the same account at the end of each of the next 6 years. (a) Using the FV function in Excel or a financial calculator, calculate how much Sunland will have in its account at the end of 6 years. (Do not round intermediate calculations. Round final answer to 2 decimal places, e.g. 458,581.25.) Future value $ eTextbook and Media Attempts: 3 of 5 used (b) Assume now that Sunland will make the $10,600 deposits at the beginning of the next 6 years. Using the FV function in Excel, or a financial calculator, calculate how much Sunland will have in its account at the end of year 6. (Do not round intermediate calculations. Round final answer to 2 decimal places, e.g. 458,581.25.) Future value \$ Sunland knows it needs $498,000 in 6 years to purchase additional greenhouses. Assuming it will make annual deposits of $10,600 into an account earning 9\% annual interest at the end of the next 6 years, use the PV function in Excel or a financial calculator to determine how much it must deposit today. (Do not round intermediate calculations. Round final answer to 2 decimal places, e.g. 458,581.25.) Present value \$

Answer & Explanation Solved by verified expert

See Answer