12 Durban Moving and Storage wants to have enough money avai

12

Durban Moving and Storage wants to have enough money available 5 years from now to purchase a new tractor-trailer. If the estimated cost will be $290,000, how much should the company set aside each year if the funds earn 13% per year? The company should set aside $each year.

Solution

Amount of Investment required at end of 5 yrs 290000 Annuity Future value of deposit 6.4803 (for 5 years at 13%) Annual deposit to be made 44751