Company XYZ estimates that it needs to procure new machine at a cost of P800,000 in 5 years. In order to solve this, a sinking fund is established by having equal monthly payments into an account paying a 6.6% compounded monthly. How much should the payment for each month be?

Q: A company estimates that it will have to replace a piece of equipment at a cost of $800,000 in 5…

A: A sinking fund is a financial arrangement in which a company sets aside money on a regular basis to…

Q: The financial officer of a construction company that has just made a net profit of $45,000 on a…

A: The company wants to generate $100,000 to purchase a new power shovel.  The existing power-shovel is…

Q: An engineer was promised to have an initial salary of 42500 and will then be increased by P500 per…

A:

Q: osion problems -and manufacturing defects rendered a gasoline pipeline between El Paso and Phoenix…

A: The interest rate is the amount a lender charges a borrower and is a percentage of the principal,…

Q: A man deposits P43,799 each year into his savings account that pays 2% nominal interest compounded…

A: Given that, Present value (PV) = 43,799 Rate of interest (r) = 2% or 0.02 Time period (t) = 5 years

Q: You want to borrow $1500 at 8% and you are willing to pay $210 in simple interest.How long can you…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Marmara University Copy Center buys three copier machines that each have a useful life of seven…

A: The useful life of the copier machine is 7 years and the salvage value of each machine is $1000. The…