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Exercise 6-21 Chris Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 3 years
Exercise 6-21 Chris Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 3 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 3 years, by conducting some research online, Chris has developed the following estimates Probability Engine Overhaul Estimated Cash Outflow $270 570 720 920 Assessment 10% 30% 50% 10% How much should Chris Bowie deposit today in an account earning 9%, compounded annually, so that he will have enough money on hand in 3 years to pay for the overhaul? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Deposit amount LINK TO TEXT VIDEO: SIMILAR EXERCISE
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