document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=744823>Question 744823</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Hi \r<BR>\n" );
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document.write( "I'd appreciate some help with this question.\r<BR>\n" );
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document.write( "A taxi company must replace cars every 5 years at a cost of 450,000. The company decides to deposit 4000 at the beginning of each month into a fund for preperation.<BR>\n" );
document.write( "i)Calculate the size of this fund after 5 years if the interest rate is fixed at 6% per annum.<BR>\n" );
document.write( "ii)By how much does the company meet or exceed the target of 450,000. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #453594 by </B><A HREF=/tutors/aboutme.mpl?userid=rothauserc><B>rothauserc(4718)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=rothauserc><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=rothauserc><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=453594\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The problem states:\r<BR>\n" );
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document.write( "A taxi company must replace cars every 5 years at a cost of 450,000. The company decides to deposit 4000 at the beginning of each month into a fund for preperation.<BR>\n" );
document.write( "i)Calculate the size of this fund after 5 years if the interest rate is fixed at 6% per annum.<BR>\n" );
document.write( "ii)By how much does the company meet or exceed the target of 450,000.\r<BR>\n" );
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document.write( "There are 5 * 12 months in 5 years, this equals 60\r<BR>\n" );
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document.write( "now 60 * 4000 = 240000 deposited by the company\r<BR>\n" );
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document.write( "now we turn to the 6% per annum calculation\r<BR>\n" );
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document.write( "each year totals with interest added\r<BR>\n" );
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document.write( "1) 12 * 4000 = 48000 + 6%*48000 = 48000 + 2880 = 50880<BR>\n" );
document.write( "2) 50880 + 48000 = 98880 + 6%*98880 = 98880 + 5932.8 = 104812.8<BR>\n" );
document.write( "3) 104812.8 + 48000 = 152812.8 + 6%*152812.8 = 152812.8 + 9168.768 = 161981.568<BR>\n" );
document.write( "4) 161981.568 + 48000 = 209981.568 + 6%*209981.568 = 209981.568 + 12598.89408 = 222580.46208<BR>\n" );
document.write( "5) 222580.46208 + 48000 = 270580.46208 + 6%*270580.46208 = 270580.46208 + 16234.8277248 =  286815.2898048\r<BR>\n" );
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document.write( "The company has exceeded its target by 286815.2898048 - 250000 = 36815.2898048\r<BR>\n" );
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document.write( "Notice that the company's target is a whole number so we round the result to the whole number\r<BR>\n" );
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document.write( "36815\r<BR>\n" );
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document.write( " </SPAN>\n" );
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