Got Homework?
Connect with other students for help. It's a free community.
Here's the question you clicked on:
 0 viewing
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?
 3 months ago
 3 months 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?
 3 months ago
 3 months ago

This Question is Closed

whereismymind49Best ResponseYou've already chosen the best response.1
I got an answer of 65495.05
 3 months ago

whereismymind49Best 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: \[290,000=x+(x*.09)+[75,000+75,000*.09]*(1+.09) + {100,000+100,000*.09} *(1+.09)^{2}\]
 3 months ago

goober32Best 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)
 3 months ago

whereismymind49Best 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 \[290,000= x(1+.09)^{1}+75,000(1+.09)^{2}+100,000(1+.09)^3\]
 3 months ago
See more questions >>>
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.