A northern California consulting firm wants to start saving money for replacement of network servers. If the company invests $10,000 at the end of year 1 but decreases the amount invested by 5% each year, how much will be available 5 years from now at an earning rate of 10% per year?

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.