In the auto repair shop of the EAR Company, the air compressor is heavily used a

Question

In the auto repair shop of the EAR Company, the air compressor is heavily used and is not very well maintained or serviced. A standard compressor made for regular use costs $1650 installed and lasts 4 years. A heavy duty, maintenance free compressor will cost $2300 installed. How long must the heavy duty compressor last to be a better investment if money is worth 4 percent per year? Years that the compressor must last = (Express your answer in years to the nearest hundredth (0.01) of a year and enter only the number without units.)

Explanation / Answer

2300-1650 = 650

650 * 1.04^x = 1650

1.04^x = 2.538462

x = 23.75169 years

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