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Henry Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 5 years to overhaul
Henry Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 5 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 5 years, by conducting some research online, Henry has developed the following estimates. Probability Assessment Engine Overhaul Estimated Cash Outflow $280 640 760 790 10% 30% 50% 10% Click here to view factor tables How much should Henry Bowie deposit today in an account earning 9%, compounded annually, so that he will have enough money on hand in 5 years to pay for the overhaul? (Round factor values to 5 decimal places, es. 1.25124 and final answer to O decimal places, eg.458,581.) Deposit amounts
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