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Alan Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 4 years to overhaul
Alan Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 4 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 4 years, by conducting some research online, Alan has developed the following estimates. Engine Overhaul Estimated Cash Outflow Probability Assessment $270 10% 490 30% 770 50% 970 10% How much should Alan Bowie deposit today in an account earning 9%, compounded annually, so that he will have enough money on hand in 4 years to pay for the overhaul? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Deposit amount $ What is the present value of $2,900 to be received at the beginning of each of 29 periods, discounted at 5% compound interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) The present value $
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