Morgan Contreras is trying to determine the amount to set aside so that he will have...

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Morgan Contreras is trying to determine the amount to set aside so that he will have enough money on hand in 3 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 3 years, by conducting some research online, Morgan has developed the following estimates Engine Overhaul Estimated Cash Outflow $310 620 840 990 Probability Assessment 10% 30% 50% 10% Click here to view factor tables i How much should Morgan Contreras deposit today in an account earning 8%, compounded annually, so that he will have enough money on hand in 3 years to pay for the overhaul? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Deposit amount Morgan Contreras is trying to determine the amount to set aside so that he will have enough money on hand in 3 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 3 years, by conducting some research online, Morgan has developed the following estimates Engine Overhaul Estimated Cash Outflow $310 620 840 990 Probability Assessment 10% 30% 50% 10% Click here to view factor tables i How much should Morgan Contreras deposit today in an account earning 8%, compounded annually, so that he will have enough money on hand in 3 years to pay for the overhaul? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Deposit amount

Answer rating: 100% (QA)

Firstly we have to calculate the estimated ove... View the full answer