A farmer shows up at a tractor dealership with $175,000 to buy a tractor priced at $170,995. The excess after buying the tractor will be used to pay for license, insurance and maintenance for the first few months. He invested all of his savings 8 years ago to buy this tractor. His investment earned 9% annual interest compounded monthly. A P(1+r/n)^nt A.) Since he is paying cash for the tractor he is able to negotiate 10% reduction off the sticker price. How much did he pay for the tractor? B.) How much money does he have available for license, insurance and maintenance. C.) How much money did he invest 8 years ago to be able to buy the tractor and cover the other costs? Round your answer to the nearest dollar.
A farmer shows up at a tractor dealership with $175,000 to buy a tractor priced at $170,995. The excess after buying the tractor will be used to pay for license, insurance and maintenance for the first few months. He invested all of his savings 8 years ago to buy this tractor. His investment earned 9% annual interest compounded monthly. A P(1+r/n)^nt
A.) Since he is paying cash for the tractor he is able to negotiate 10% reduction off the sticker price. How much did he pay for the tractor?
B.) How much money does he have available for license, insurance and maintenance.
C.) How much money did he invest 8 years ago to be able to buy the tractor and cover the other costs? Round your answer to the nearest dollar.
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