Question: RNTTA VERSION BACK NEXT Exercise 6-21 Keith Bowie is trying to determine the amount to set aside so that he will have enough money on
RNTTA VERSION BACK NEXT Exercise 6-21 Keith Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 2 years to overhaul the engine on his vintage While there is some uncertainty about the cost of engine overhauls in 2 years, by conducting some research online, Keith has developed the following estimates. Engine Overhaul Estimated Cash Probability Outflow $200 450 600 750 1096 30% 50% 10% Click here to view factor tables How much should Keith Bowie deposit today in an account earning 6%, compounded annually, so that he will have enough money on hand in 2 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 Click if you would like to Show Work for this question: Open Show Work
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