A small business company is preparing a schedule of funds to form a sinking fund forfuture expansion. The schedule of funds are as follows:Present year, n25000n+124000n+22300022000n+3------n+421000--------and so on--By the end of the 15h year, the company will purchase an equipment needed for theimprovement and expansion of the company costing P500,000. If money is worth 16%,how much money will be needed by the company to supplement the sinking fund?

Answered: t year, n n+1 25000 24000 23000 n+2 n+3…

Business

Economics

t year, n n+1 25000 24000 23000 n+2 n+3 22000 n+4 21000

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

A small business company is preparing a schedule of funds to form a sinking fund for
future expansion. The schedule of funds are as follows:
Present year, n
25000
n+1
24000
n+2
23000
22000
n+3
------
n+4
21000
------
--and so on--
By the end of the 15h year, the company will purchase an equipment needed for the
improvement and expansion of the company costing P500,000. If money is worth 16%,
how much money will be needed by the company to supplement the sinking fund?

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