A construction company is thinking about buying a used bulldozer for $61,000. If the company buys this dozer now, the equivalent future amount in year 4 that the company is paying for the dozer at 4%

Question

admin

26.07.2022 - 03:27

A construction company is thinking about buying a used bulldozer for $61,000. If the company buys this dozer now, the equivalent future amount in year 4 that the company is paying for the dozer at 4%

Question:

A construction company is thinking about buying a used bulldozer for $61,000. If the company buys this dozer now, the equivalent future amount in year 4 that the company is paying for the dozer at 4% interest per year is closest to:

a. $52,143

b. $65,461

c. $71,365

d. $77,480

Answers (0)

Janet April 18, 2023 в 06:50

The formula to find the equivalent future amount is: FV = PV(1 + r)^n Where: FV = future value PV = present value r = annual interest rate n = number of years Using the given values: PV = $61,000 r = 0.04 n = 4 FV = $61,000(1 + 0.04)^4 FV = $71,365.19 Therefore, the closest answer is option c. $71,365.

Do you know the answer?

Leave a comment Cancel Response

Not sure about the answer?

Find the right answer to the question A construction company is thinking about buying a used bulldozer for $61,000. If the company buys this dozer now, the equivalent future amount in year 4 that the company is paying for the dozer at 4% by subject Business, and if there is no answer or no one has given the right answer, then use the search and try to find the answer among similar questions.

Search for other answers

New questions in the category: Business

Calculate the Debt Ratio given that Total Assets is $1620 and Total Owners’ Equity is $1035. a. 36.11% b. 36.56% c. 37.03% d. 37.4%

Answers (0)

A tank of capacity 200 gallons holds 100 gallons of water with 25 pounds of sugar in solution. Pure water is poured into it at a rate of 2 gallons per minute, and the well stirred mixture flows out of this tank at a rate of

Answers (0)

List the basic steps in the recording process.

Answers (1)

Do independent contractors get overtime pay?

Answers (1)

Briefly distinguish between financial and managerial accounting as they relate to (i) the primary users, (ii) the type and frequency of reports, (iii) the purpose of reports, and (iv) the content of reports.

Answers (0)