Leberland Corporation deposits $125,000 every year in a savings account (beginning at the end of the current year) for the next six years so that it can purchase a new piece of machinery at the end of six years. The interest rate is 6%. How much money will Leberland Corporation have at the end of six years? Use the future value of an ordinary annuity factor table shown below to derive your answer.
Excerpt from future value of an ordinary annuity factor table

\begin{array} { | c | c | c | c | c | } \hline \text { Periods } & 3 \% & 4 \% & 5 \% & 6 \% \\\hline 1 & 1.00000 & 1.00000 & 1.00000 & 1.00000 \\\hline 2 & 2.03000 & 2.04000 & 2.05000 & 2.06000 \\\hline 3 & 3.09090 & 3.12160 & 3.15250 & 3.18360 \\\hline 4 & 4.18363 & 4.24646 & 4.31013 & 4.37462 \\\hline 5 & 5.30914 & 5.41632 & 5.52563 & 5.63709 \\\hline 6 & 6.46841 & 6.63298 & 6.80191 & 6.97532 \\\hline 7 & 7.66246 & 7.89829 & 8.14201 & 8.39384 \\\hline 8 & 8.89234 & 9.21423 & 9.54911 & 9.89747 \\\hline 9 & 10.15911 & 10.58280 & 11.02656 & 11.49132 \\\hline 10 & 11.46338 & 12.00611 & 12.57789 & 13.18079 \\\hline\end{array}

A) $871,915
B) $397,950
C) $435,958
D) $198,975

You Have Discovered an Investment Opportunity That Earns a 6

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge