Question

Bad Company, Inc., has a major outlay of $1.85 million that is needed to renovate the company's manufacturing facility. Because the company's management is conservative, it won't undertake the renovation twon't undertake the renovation until it has the cash necessary to fund the renovation. The company plans to deposit $143,000 each quarter into an account that will earn 165 percent per quarter. How many years will it be until the company has the money saved for the renovation? Multiple Choice O 0 2.73 years O C) 2.96 years O C) 2.53 years

Answer 1

Correct answer will be 2.96 year

PV	0
PMT	-143000
FV	1850000
Rate	1.65%
Use Exel , by Using Function , nper(…..)
Total Period = 11.822
number of years (11.822/4) = 2.96 year