Finance production of handheld electronic brain

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Reference no: EM131957198

Apple Computer wants to have $45 billion available 8 years from now to finance production of a handheld "electronic brain" that, based on your behavior, will learn how to control nearly all the electronic devices in your home, such as the thermostat, coffee pot, TV, and sprinkler system. The company expects to set aside uniformly increasing amounts of money each year to meet its goal. If the amount set aside at the end of year 1 is S200 million, how much will the constant increase have to be each year? Assume the investment account grows at a rate of 12% per year. Solve the problem using formula and table values and compare the results and explain the reason of difference between them.

Reference no: EM131957198

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