A community for students.
Here's the question you clicked on:
 0 viewing
goober32
 one year ago
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?
goober32
 one year ago
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?

This Question is Closed

whereismymind49
 one year ago
Best ResponseYou've already chosen the best response.1I got an answer of 65495.05

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

goober32
 one year ago
Best ResponseYou've already chosen the best response.0for 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)

whereismymind49
 one year ago
Best ResponseYou've already chosen the best response.1I 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 \[290,000= x(1+.09)^{1}+75,000(1+.09)^{2}+100,000(1+.09)^3\]
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.