Solve the problem.
-A company has ordered 5 new personal computers at a cost of $\$ 1700$ each. They will not be delivered for 11 months. What amount should the firm deposit in an account paying $7.32 \%$ to have enough money to pay for them?
A) $\$ 4112.04$
B) $\$ 7965.51$
C) $\$ 8011.31$
D) $\$ 7920.24$

Question

Quizplus · Accepted Answer

The future value needed is $8500 (5 computers x $1700 each). Using the formula for present value, $PV = \frac{FV}{(1 + r/n)^{nt}}$, where $r = 0.0732$, $n = 1$, and $t = 11/12$, the present value is approximately $7965.51.

Solve the Problem $1700\$ 1700$1700 Each They Will Not Be Delivered for 11 Months

Solve the Problem $\$ 1700$ Each They Will Not Be Delivered for 11 Months