Question
Keith Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 3 years to overhaul
Keith 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, Keith has developed the following estimates.
How much should Keith Bowie deposit today in an account earning 8%, 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: ??? |
(Please provide how this would be entered in the Finance PVM solver of a scientific calculator if possible. i.e. N=, I%=, PV=, PMT=, FV=, P/Y=, C/y=, PMT=)
Engine Overhaul Estimated Cash Outflow | Probability Assessment | |||
$340 | 10 | % | ||
460 | 30 | % | ||
830 | 50 | % | ||
720 | 10 | % |
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