Metso Automation, which manufactures addressable quarter- turn electric actuators, is planning to set aside $100,000 now and $150,000 one year from now for possible replacement of the heating and cooling systems in three of its larger manufacturing plants. If the replacement won't be needed for 4 years, how much will the company have in the account, if it earns interest at a rate of 8% per year?
Metso Automation, which manufactures addressable quarter- turn electric actuators, is planning to set aside $100,000 now and $150,000 one year from now for possible replacement of the heating and cooling systems in three of its larger manufacturing plants. If the replacement won't be needed for 4 years, how much will the company have in the account, if it earns interest at a rate of 8% per year?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Metso Automation, which
manufactures addressable quarter-
turn electric actuators, is planning to
set aside $100,000 now and
$150,000 one year from now for
possible replacement of the heating
and cooling systems in three of its
larger manufacturing plants. If the
replacement won't be needed for 4
years, how much will the company
have in the account, if it earns
interest at a rate of 8% per year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbb0e8a99-d5c9-462c-b6b0-0d0f7a0e5425%2F80732b1e-325d-47c6-aba0-57154f58e2dc%2Fj1uwlpo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Metso Automation, which
manufactures addressable quarter-
turn electric actuators, is planning to
set aside $100,000 now and
$150,000 one year from now for
possible replacement of the heating
and cooling systems in three of its
larger manufacturing plants. If the
replacement won't be needed for 4
years, how much will the company
have in the account, if it earns
interest at a rate of 8% per year?
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