A business sets up a sinking fund so they will have a $51,000.00 to pay for a replacement piece of equipment in 8 years when the current equipment will be sold for scrap. If they make deposits at the end of every 2 months for 8 years in the investment that pays 7.8% compounded every 2 months, what size should each payment be? If needed, round to 2 decimal places.

A business sets up a sinking fund so they will have a $51,000.00 to pay for a replacement piece of equipment in 8 years when the current equipment will be sold for scrap. If they make deposits at the end of every 2 months for 8 years in the investment that pays 7.8% compounded every 2 months, what size should each payment be? If needed, round to 2 decimal places.

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter9: Sequences, Probability And Counting Theory

Section9.4: Series And Their Notations

Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...

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