A company estimates that it will have to replace a piece of equipment at a cost of $800,000 in 5 years. The company has an account that pays 5.6% interest compounded monthly. The company has two options: a lump sum deposit or a sinking fund c) Instead, if a sinking fund is established, how much should each payment be? d) How much will be earned in interest?
A company estimates that it will have to replace a piece of equipment at a cost of $800,000 in 5 years. The company has an account that pays 5.6% interest compounded monthly. The company has two options: a lump sum deposit or a sinking fund c) Instead, if a sinking fund is established, how much should each payment be? d) How much will be earned in interest?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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