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You deposit $5,000 now into an account and plan to withdraw it in 3 years, with 10% nominal interest, compounded monthly. What would your factor formula be if you desire to know how much your account will be worth at that time based on the effective interest rate per year? F=$5,000(F/P,10.47%,3) F=$5,000(F/P,10%,3) F=$5,000(P/F,10.47%,3) F=$5,000(F/P,8.33%,36) How much money needs to be set aside today to purchase a new piece of equipment in five years? The money is expected to earn 8% interest compounded annually and the price of the equipment is expected to increase by 3% per year. The present cost of the equipment is $10,000. $6,806,00 $7,889.81 $6912.40 $7,010,18 You deposit $5,000 now into an account and plan to withdraw it in 3 years, with 10% nominal interest, compounded monthly. What would your factor formula be if you desire to know how much your account will be worth at that time based on the effective interest rate per year? F=$5,000(F/P,10.47%,3) F=$5,000(F/P,10%,3) F=$5,000(P/F,10.47%,3) F=$5,000(F/P,8.33%,36) How much money needs to be set aside today to purchase a new piece of equipment in five years? The money is expected to earn 8% interest compounded annually and the price of the equipment is expected to increase by 3% per year. The present cost of the equipment is $10,000. $6,806,00 $7,889.81 $6912.40 $7,010,18

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