Andrew has purchased a new car. He want to set aside enough money in a bank account to pay the maintenance for the first three years. The maintenance cost of the car is: Year 1: $120 2: $150 3: $180 Assume that the maintenance costs occcur at the end of each year and that the bank pays 5% interest. How much should Andrew deposit in the bank now? In order to solve this question, what information & formula would Andrew need? n=5, i=7%, G=60 and ? = ?(? + ? ) � A1=120, G=30, n=3, i=5% & ? = ? [ ?/ ? − (? / (?+?) ?−?) ] A1=150, i=8%, G=50, n=4 & ? = ? [ (?+?) ?−? ?(?+?) ? ] G=210, i=5%, n=3, & ? = ?[ (?+?) ?−? / ? ]
Andrew has purchased a new car. He want to set aside enough money in a bank account to pay the maintenance for the first three years. The maintenance cost of the car is: Year 1: $120 2: $150 3: $180 Assume that the maintenance costs occcur at the end of each year and that the bank pays 5% interest. How much should Andrew deposit in the bank now? In order to solve this question, what information & formula would Andrew need? n=5, i=7%, G=60 and ? = ?(? + ? ) � A1=120, G=30, n=3, i=5% & ? = ? [ ?/ ? − (? / (?+?) ?−?) ] A1=150, i=8%, G=50, n=4 & ? = ? [ (?+?) ?−? ?(?+?) ? ] G=210, i=5%, n=3, & ? = ?[ (?+?) ?−? / ? ]
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...
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Andrew has purchased a new car. He want to set aside enough money in a bank account to pay the maintenance for the first three years.
The maintenance cost of the car is:
Year 1: $120
2: $150
3: $180
Assume that the maintenance costs occcur at the end of each year and that the bank pays 5% interest. How much should Andrew deposit in the bank now?
In order to solve this question, what information & formula would Andrew need?
n=5, i=7%, G=60 and ? = ?(? + ? ) �
A1=120, G=30, n=3, i=5% & ? = ? [ ?/ ? − (? / (?+?) ?−?) ]
A1=150, i=8%, G=50, n=4 & ? = ? [ (?+?) ?−? ?(?+?) ? ]
G=210, i=5%, n=3, & ? = ?[ (?+?) ?−? / ? ]
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