Question 6 of 80 Question 6 1 points Save Answer On January 15, 2020, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2024, at an estimated cost of $8,000,000. Dolan plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2020. Future value factors are as follows: Future value of 1 at 10% for 5 periods 1.61, Future value of ordinary annuity of 1 at 10% for 4 periods 4.64, Future value of annuity due of 1 at 10% for 4 periods 5.11. Dolan should make four annual deposits of $1,423,234. $1,565,558. $1,724,137. $2,000,000. ♡ A Moving to the next question prevents changes this answer. Question 6 of 80 Type here to search O Et 60°F Rain 7:11 PM 10/26/2021

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EXPERT ANSWER

Future value of annuity due=(1+rate)*Annuity[(1+rate)^time period-1]/rate

8,000,000=Annuity*5.11 [Taking future value of annuity due factor(10%,4 years)=5.11]

Annuity=8,000,000/5.11

which is equal to

=$1,565,558 (Approx)