Mathematics, 03.03.2020 02:01 dylanentwistle5197
Morgan Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 3 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 3 years, by conducting some research online, Morgan has developed the following estimates.
Engine Overhaul Estimated Cash Outflow Probability Assessment
$390 10%
570 30%
750 50%
790 10%
How much should Keith Bowie deposit today in an account earning 6%, compounded annually, so that he will have enough money on hand in 6 years to pay for the overhaul?
Answers: 1
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