Business and Finance

timer Asked: Aug 28th, 2014
account_balance_wallet $5

Question Description

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 needed.

Tutor Answer

School: Rice University

Let the amount be x

Interest rate = .9% = 0.009

The amount at the end of 1 year = x*(1+.009) =7200

x =7200/(1.009) =7135.778 = 7135.78

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Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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