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?

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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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?

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