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Richard Nobrega is trying to determine the amount to set aside so that he will have enough money on hand in 2 years to
Richard Nobrega is trying to determine the amount to set aside so that he will have enough money on hand in 2 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 2 years, by conducting some research online, Richard has developed the following estimates: Engine Overhaul Estimated Cash Outflow Probability Assessment $240 15 % 460 20 % 680 55 % 790 10 % Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. How much should Richard deposit today in an account earning 7%, compounded annually, so that he will have enough money on hand in 2 years to pay for the overhaul? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to O decimal places, eg. 125.) 460 20 % 680 55 % 790 10 % Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. How much should Richard deposit today in an account earning 7%, compounded annually, so that he will have enough money on hand in 2 years to pay for the overhaul? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to O decimal places, eg. 125) Deposit amount
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