A business set up a sinking fund so they will have a 62,000.00 to pay for a replacement piece of equipment in 11 years when the current equipment will be sold for scrap. If they make deposit at the end of every 2 months for 11 years in the investment that pays 7.4% compounded every 2 months, what size should each payment be?
A business set up a sinking fund so they will have a 62,000.00 to pay for a replacement piece of equipment in 11 years when the current equipment will be sold for scrap. If they make deposit at the end of every 2 months for 11 years in the investment that pays 7.4% compounded every 2 months, what size should each payment be?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 9RE
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A business set up a sinking fund so they will have a 62,000.00 to pay for a replacement piece of equipment in 11 years when the current equipment will be sold for scrap. If they make deposit at the end of every 2 months for 11 years in the investment that pays 7.4% compounded every 2 months, what size should each payment be?
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