The Reliance Volunteer Fire Company wants to take advantage of a state program to save money to purchase a new fire truck. The truck will cost $210,000, and members of the finance committee estimate that with community and state contributions, they can save $4,000 per month in an ordinary annuity paying 10.8% annual interest. How long will it take to save for the truck? It will take months to save for the truck. (Round up to the nearest month.)

The Reliance Volunteer Fire Company wants to take advantage of a state program to save money to purchase a new fire truck. The truck will cost $210,000, and members of the finance committee estimate that with community and state contributions, they can save $4,000 per month in an ordinary annuity paying 10.8% annual interest. How long will it take to save for the truck? It will take months to save for the truck. (Round up to the nearest month.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 28P

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