SmarterEd

Aussie Maths & Science Teachers: Save your time with SmarterEd

  • Login
  • Get Help
  • About

Compound Interest, SMB-028

It is estimated that inflation will average 3.5% per annum over the next eight years.

If a new machine costs $60 000 now, calculate the cost of a similar new machine in eight years time, adjusted for inflation. Assume no other cost change.

Write your answer correct to the nearest dollar.  (2 marks)

--- 4 WORK AREA LINES (style=lined) ---

Show Answers Only

`$79\ 008.54`

Show Worked Solution
`FV` `= PV(1+r)^n`
  `= 60\ 000(1.035)^8`
  `= $79\ 008.54\ \ \text{(nearest cent)}`

Filed Under: Compound Interest Tagged With: num-title-ct-coreb, smc-4334-10-Find FV, smc-4334-70-Inflation

Copyright © 2014–2025 SmarterEd.com.au · Log in