A rotary engine powers a vertical takeoff and landing (VTOL) personal aircraft k

Question

A rotary engine powers a vertical takeoff and landing (VTOL) personal aircraft known as the Moller Skycar M400. It is a flying car known as a personal air vehicle (PAV), and it is expected to make its first untethered flight in 2020. The PAV has been under development for 26 years at a total cost of $100 million. Assuming the $100 million was spent in an equal amount each year, determine the future worth at the end of the 26-year period at an interest rate of 8% per year. The future worth is $ 369018461.1

Explanation / Answer

First calculate equal amount each year

100/26=3.84615=3.85

then finding future worth of each of this equal installment

3.85+3.85(1.08)+3.85(1.08)^2+...+3.85(1.08)^26=$332.45045 mn

Hence future worth is $ 332,450,458

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