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26 December, 12:25

If BNSF Railroad saves $100,000 in year one, $110,000 in year two, and amounts increasing by $10,000 each year for all five years, what is the annualized savings at an interest rate of 10%?

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  1. 26 December, 13:35
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    Answer: annualized saving at the interest rate of 10% is $660,000

    Explanation:

    Savings;

    Yr 1 = $100,00

    Yr 2 = $110,000

    Yr 3 = $120,000

    Yr 4 = $130,000

    Yr 5 = $140,000

    Total savings = $600,000

    10% of total savings = 0.1 x $600,000 = $60,000

    Annualised savings plus interest amounts to,

    $600,000 + $60,000 = $660,000
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