Maintenance costs for a vehicle are $500 for the first year and increase by 150 dollars each year. If Joe wants to set money aside today to cover all of the costs for the car for the next 10 years, how much should he deposit today into his account if it earns 5% interest each year.
He should deposit $7208.59 today... View the full answer
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Joe should set aside $7520.43734 if it... View the full answer
- With the method I was doing the problem i got 8608.67465 as my answer. I did (500/1.05)+(650/(1.05)^2))+(800/(1.05^3))...+(1850/(1.05)^10))
- Jun 04, 2018 at 7:22pm
- There was a misunderstanding in decoding the question. The method used by me was incorrect and your formula as well as the answer is correct. Apologies.
- Jun 04, 2018 at 7:47pm
- i have another question i need help with too, you think you can help me with that too?
- Jun 04, 2018 at 7:52pm