I’m trying to learn for my Business class and I’m stuck. Can you help?
How much should I set aside now to buy new equipment that
cost $7200 in one year? The current interest rate is 0.9% annually, compounded
annually. The amount of money to be set aside is? Round to nearest cent as
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Let the amount be x
Interest rate = .9% = 0.009
The amount at the end of 1 year = x*(1+.009) =7200