PART A.) A company is considering the purchase of a piece of equipment for $78,100. If instead the company waits 3 years the machine appreciates in value at 5% per year interest. How much money does the company have to save per year, to afford the equipment in Year 3?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A present value of an annuity calculation helps the person to know about how much should he or she has to save for the future fund accumulation. It is generally applied in the problems, where the future amount is required after some years. For this, an annual deposit of funds will be kept to meet future requirements.
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