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1. The repair costs for some handheld equipment is estimated to be $120 the first year, increasing by $30 per year in subsequent years. What is the amount a person will need to deposit into a bank account, paying 4% interest, to provide for the repair costs for the next five years?

1. The repair costs for some handheld equipment is estimated to be $120 the first year, increasing by $30 per year in subsequent years. What is the amount a person will need to deposit into a bank account, paying 4% interest, to provide for the repair costs for the next five years?

Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.1: Why Save?
Problem 6R
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1. Use the provided chart to solve this problem.

factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth uniform gradient present worth uniform gradient future worth uniform gradient uniform series converts P to F F to P F to A P to A A to F A to P G to P G to F G to A symbol (F/P, i%, n) (P/F, 1%, n) (A/F, i%, n) (A/P, i%, n) (F/A, 1%, n) (P/A, i%, n) (P/G,i%, n) (F/G,1%, n) (A/G, i%, n) formula (1 + i)" (1 + i)-¹ i (1 + i)" - 1 i(1+i)" (1+i)n-1 (1+i)n-1 i (1+i)n-1 i(1+i)n 1- i (1+i)n-1 1² (1+i)n n i(1+i)n (1+i)n-1 n i n (1+i)n-1
Transcribed Image Text:factor name single payment compound amount single payment present worth uniform series sinking fund capital recovery uniform series compound amount uniform series present worth uniform gradient present worth uniform gradient future worth uniform gradient uniform series converts P to F F to P F to A P to A A to F A to P G to P G to F G to A symbol (F/P, i%, n) (P/F, 1%, n) (A/F, i%, n) (A/P, i%, n) (F/A, 1%, n) (P/A, i%, n) (P/G,i%, n) (F/G,1%, n) (A/G, i%, n) formula (1 + i)" (1 + i)-¹ i (1 + i)" - 1 i(1+i)" (1+i)n-1 (1+i)n-1 i (1+i)n-1 i(1+i)n 1- i (1+i)n-1 1² (1+i)n n i(1+i)n (1+i)n-1 n i n (1+i)n-1
1. The repair costs for some handheld equipment is estimated to be $120 the first year, increasing by $30 per year in subsequent years. What is the amount a person will need to deposit into a bank account, paying 4% interest, to provide for the repair costs for the next five years?
Transcribed Image Text:1. The repair costs for some handheld equipment is estimated to be $120 the first year, increasing by $30 per year in subsequent years. What is the amount a person will need to deposit into a bank account, paying 4% interest, to provide for the repair costs for the next five years?
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