Harlan Corporation deposits $225,000 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

Answer rating: 100% (QA)

To calculate the future value of Harlan Corporations savings we need to use t... View the full answer