The patriot missile, developed by Lockheed Martin, is designed to detect, identify, and shoot down aircraft and other missiles. The Patriot Advanced Capability-3 was originally promised to cost $3.9 billion, but due to extra time needed to develop computer code and scrapped tests (due to high winds) at White Sands Missile Range, the actual cost was much higher. If the total project development time was 10 years and costs increased at a rate of 0.5% per month, what was the final cost of the project?
What will be an ideal response?
F = 3.9(F/P,0.5%,120) (in $ billion)
= 3.9(1.8194)
= $7,095,660,000
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