Racing Motors wants to save $825,000 to buy some new equipment three years from now. The plan is to set aside an equal amount of money on the first day of each quarter starting today. How much does the company need to save each quarter to achieve its goal if it can earn 4.45 percent on its savings?

Question

Quizplus · Accepted Answer

The correct answer is A because $63,932.91 is the amount that needs to be saved each quarter to achieve the goal of $825,000 in three years, assuming a 4.45 percent interest rate.

Racing Motors Wants to Save $825,000 to Buy Some New