Claudine Corporation Will Deposit $5,000 into a Money Market Sinking

Multiple Choice

Claudine Corporation will deposit $5,000 into a money market sinking fund at the end of each year for the next five years. How much will accumulate by the end of the fifth and final payment if the sinking fund earns 9% interest?

A) $32,617.
B) $29,924.
C) $27,250.
D) $26,800.FVA = $5,000 x 5.9847* = $29,924 *FVA of $1: n=5; i=9%