The musical instrument store estimates costs of $18,750.00 annually to carry inventory of musical instruments and accessories. the costs include 12% for storage, 12% for interest, and 5% for transportation. what is the value of the inventory to the nearest cent?

To find the value of the inventory to the nearest cent:

Estimated costs are: $18,750

Storage costs: 12%

Interest costs: 12%

Transportation costs: 5%

Let's add the costs up: 12% + 12% + 5% = 29%

We are solving for the value of inventory so in this case we will make that X.

X = estimated costs/interest amounts

X = $18,750/29%

X = $18,750/0.29

X = $64,655.17

The value of the inventory is $64,655.17

To check your work you can take $64,655.17 and multiply it by 29%

= $18,750