Business and Finance

Business & Finance
Tutor: None Selected Time limit: 1 Day

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.

Aug 28th, 2014

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

Aug 28th, 2014

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