Administrators at Bacon College are debating the construction of a new building to house the School of Business Administration. They have estimated the total amount needed at the time of construction starts in 5 years to be $21,300,000. The college already has $4,500,000 earning 6.5% per year that can be used to meet that goal.
(A) Find the future value of the $4,500,000
(B) Find the shortage in 5 years
(C) Find the amount that must be placed into a sunking fund earning 6.5% per year, to accumulate the additional funds needed.