Question 909166

Just here to check my answers if am I correct. Its gonna be a long question anyway
If Im correct no need for solutions, if wrong, well just show the solution and right answer.
Rules:
log answer in 6 decimal places(no round-off error, just copy)
Money( with 2 decimal place, round-off error)

The Villager of Kieler completes an exploratory study and find the current village tower will need a replacement in 10 years at a cost of $290,000. To finance this amount, the village board will at this time asses it's 958 homeowners with a one time surcharge and then invest this amount in a 10 year Cash Deposit paying 8.25% interest compounded semiannually.

a.How much will the village of Kieler need to invest at this time in this CD in order to raise the $290,000 in 10 years?
b.What amount should each homeowner pay as a surcharge?

Answers:
a.$129,210.26
b.$134.88
<pre>
With P being the present value, we get: {{{log P = log (290000/1.04125^20)}}}_____{{{P = 290000/1.04125^20}}}
Your answer is correct!! The village needs to invest that amount (present value) to raise the $290,000 (future value),
in 10 years. However, I got ${{{highlight_green(129210.471006)}}} (to 6 decimal places), and ${{{highlight_green(129210.47)}}} (rounded to 2 decimal places)
- a difference of just a few cents, maybe caused by rounding. My per-person calculation is exactly what you have.

Good job!!