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Dave's Bakery will need a new oven in 5 years. Estimated cost of the oven is $5,000. If Dave is able to earn 6% compounded
| Dave's Bakery will need a new oven in 5 years. | |||
| Estimated cost of the oven is $5,000. | |||
| If Dave is able to earn 6% compounded annually on an investment, how much does he need | |||
| to invest today so that there will be sufficient funds to buy the oven in 5 years? | |||
| no.2 | Shelley's Charter Service will need a new boat in 5 years. | |||
| Estimated cost of the boat is 20,000. | ||||
| If Shelley is able to earn 8% compounded quarterly on an investment, how much does she need | ||||
| to invest today so that there will be sufficient funds to buy the boat in 5 years? | ||||
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