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You start a landscaping business as a side job the summer before starting your engineering program. You estimate that you can earn $ 1 8
You start a landscaping business as a side job the summer before starting your engineering program. You estimate that you can earn $ a week doing lawns for weeks each
summer. You plan to invest your earnings in an account that has an interest rate of compounded annually.
a If your program takes you three years to complete, how much will your savings be worth when you graduate?
Investing your weekly earnings into an account earning interest will give you $ after three years.
Round to the nearest cent as needed.
b You expand your business to include raking leaves and shoveling driveways. You can now charge your clients a monthly fee throughout the year, earning you $ per week each
week of the year. What is your projected future value after three years, assuming the interest rate remains
The future value is $
Round to the nearest cent as needed.
c Your market research indicates that you will have to reduce your weekly price to attract annual customers. You will instead earn $ per week. What will your total savings now be
by the time you graduate?
The future value is $
Round to the nearest cent as needed.
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