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Town Fair Tires just decided to save money each year for the next four years to...

Town Fair Tires just decided to save money each year for the next four years to help fund a new building. If it earns 8.0 percent on its savings, how much will the firm have saved at the end of year 4?

End of Year                       Amount Saved

  1. $15,000
  2. $34,000
  3. $25,000
  4. $42,000

A.

$97,521.80

B.

$100,472.62

C.

$121,854.50

D.

$127,553.28

E.

$129,316.11
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Homework Answers

Answer #1

Year Amount Interest rate Amount($)

1 15,000 (1.08)^3 18,895.68

2 34,000 (1.08)^2 39,657.60

3 25,000 (1.08)^1 27,000.00

4 42,000 1 42,000.00

127,553.28

Option D: 127,553.28

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