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Leon Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 3 years to overhaul
Leon 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, Leon has developed the following estimates. Engine Overhaul Estimated Cash Outflow Probability Assessment $370 10% 470 720 30% 50% 760 10% Click here to view factor tables How much should Leon Bowie deposit today in an account earning 6%, 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, eg. 458,581.) Deposit amount $
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