Overhaul the engine


Keith Bowie is trying to find out the amount to set aside so that he will have enough money on hand in 6 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 6 years, by conducting some research online, Keith 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? (Round answer to 0 decimal places, e.g. $5,845.)

Request for Solution File

Ask an Expert for Answer!!
Mathematics: Overhaul the engine
Reference No:- TGS0874413

Expected delivery within 24 Hours