A manufacturer of prototyping equipment wants to have $3,000,000 available 10 years from now so that a new product line can be initiated. If the company plans to deposit money each year, starting 1 year from now, the equation that represents how much the company is required to deposit each year at 10% per year interest to have the $3,000,000 immediately after the last deposit is: (a) 3,000,000(A∕F,10%,10) (b) 3,000,000(A∕F,10%,11) (c) 3,000,000 + 3,000,000(A∕F,10%,10) (d) 3,000,000(A∕P,10%,10)
A manufacturer of prototyping equipment wants to have $3,000,000 available 10 years from now so that a new product line can be initiated. If the company plans to deposit money each year, starting 1 year from now, the equation that represents how much the company is required to deposit each year at 10% per year interest to have the $3,000,000 immediately after the last deposit is: (a) 3,000,000(A∕F,10%,10) (b) 3,000,000(A∕F,10%,11) (c) 3,000,000 + 3,000,000(A∕F,10%,10) (d) 3,000,000(A∕P,10%,10)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
A manufacturer of prototyping equipment wants
to have $3,000,000 available 10 years from now
so that a new product line can be initiated. If the
company plans to deposit money each year,
starting 1 year from now, the equation that represents
how much the company is required to
deposit each year at 10% per year interest to
have the $3,000,000 immediately after the last
deposit is:
(a) 3,000,000(A∕F,10%,10)
(b) 3,000,000(A∕F,10%,11)
(c) 3,000,000 + 3,000,000(A∕F,10%,10)
(d) 3,000,000(A∕P,10%,10)
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