Ruth Wants to Save an Amount of Money to Buy

question 75

Essay

Ruth wants to save an amount of money to buy a new computer in two years from now. She estimates that the price of the computer will be $800, and she wants to save the money in two tranches at the beginning of each of the next two years. For simplicity, suppose interest is computed only at the end of the year and Ruth wants to save equal amounts every year. If the interest rate is 10% per year, how much does Ruth need to save every year?

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Definitions:

Bit Shift Down

A binary operation that moves bits to a lower position, effectively dividing the number by two for each shift.

Sequencer Instruction

A command in PLC programming that controls the execution of a sequence of operations or steps, typically used in automation processes.

Energized

A state where a device, component, or circuit has electrical power applied to it and is functioning.

SQO Instruction

A Sequential Output instruction in PLC programming, used to manage the sequential activation of outputs based on the program's logic.