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I am Lyosha [343]
3 years ago
6

Eight energy corporations made plans to increase their combined spending on efficiency programs to $50 million per year for the

next 8 years as a response to global warming initiatives set by the government. What is the future worth of total investments at the end of 8 years at an interest rate of 8% per year?
Engineering
1 answer:
tangare [24]3 years ago
7 0

Answer:

F=531831381

Explanation:

There are two  ways of doing this question:

1) By Formula

2) By Using  Compound interest Table

By Formula:

F=A*\frac{(1+i)^{n}-1}{i}

Where:

F is future value

A is annual amount per year

i is interest rate

n is number of years

F=50 million*\frac{(1+0.08)^{8}-1}{0.08}

F=531831381

By Using  Compound interest Table:

F=A(F/A,i,n)

From Table F/A at i=8% and n=8 is 10.6366

F=50000000*(10.6366)

F=531830000≅531831381

The difference in two answers is due to decimal points if you take value from table to greater decimal points you will get the exact answer as by using formula.

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So from above we can say that engine B is more efficient.

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