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goober32
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S.western Moving and Storage wants to have enough money to purchase a new tractortrailor in 5 years at a cost of $290,000. If the company sets aside $100,000 in year 2 and $75,000 in year 3, how much will the company need to set aside in year 4 in order to have the money it needs if the money set aside earns 9% per year?
 8 months ago
 8 months ago
goober32 Group Title
S.western Moving and Storage wants to have enough money to purchase a new tractortrailor in 5 years at a cost of $290,000. If the company sets aside $100,000 in year 2 and $75,000 in year 3, how much will the company need to set aside in year 4 in order to have the money it needs if the money set aside earns 9% per year?
 8 months ago
 8 months ago

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whereismymind49 Group TitleBest ResponseYou've already chosen the best response.1
I got an answer of 65495.05
 8 months ago

whereismymind49 Group TitleBest ResponseYou've already chosen the best response.1
It is possible I may have made slight rounding errors but the basic equation you will setup is simple algebra as follows: \[290,000=x+(x*.09)+[75,000+75,000*.09]*(1+.09) + {100,000+100,000*.09} *(1+.09)^{2}\]
 8 months ago

goober32 Group TitleBest ResponseYou've already chosen the best response.0
for example using single payments w/ 9%  compound amount n=3... (f/p)= 1.2950 and n=2...(f/p)= 1.1881 and present worth n=1...(p/f)= .9174)
 8 months ago

whereismymind49 Group TitleBest ResponseYou've already chosen the best response.1
I would think you could just use a simple compound interest formula actually. That being set up as follow since FV= PV(1+i)^n where i is interest and n is duration \[290,000= x(1+.09)^{1}+75,000(1+.09)^{2}+100,000(1+.09)^3\]
 8 months ago
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