Answer:
$212,882.75
Explanation:
Cost from 2 years now = $190,000
Cost from 9 years now = $120,000
Interest rate = 9% Quarterly
Present Worth = Cost from 2 years now*[1/(1+interest/m)^nm] * Cost from 2 years now*[1/(1+interest/m)^nm]
Present Worth = 190,000*[1/(1+0.09/4)^2*4] + 120,000*[1/(1+0.09/4)^9*4]
Present Worth = 190,000*[1/(1.0225)^8] + 120,000*[1/(1.0225)^36]
Present Worth = 190,000*[1/1.19483] + 120,000*[1/2.22782]
Present Worth = 190,000*0.83693915 + 120,000*0.4488693
Present Worth = 159018.4385 + 53864.316
Present Worth = 212882.7545
Present Worth = $212,882.75
Thus, the amount to invest to cover these cost is $212,882.75
