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%?

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