A business sets up a sinking fund so they will have a $46,000.00 to pay for a replacement piece of equipment in 7 years when the current equipment will be sold for scrap. If they make deposits at the end of each month for 7 years in the investment that pays 5.5% compounded monthly, what size should each payment be? The monthly payments are $. (Round to 2 decimal places.)

A business sets up a sinking fund so they will have a $46,000.00 to pay for a replacement piece of equipment in 7 years when the current equipment will be sold for scrap. If they make deposits at the end of each month for 7 years in the investment that pays 5.5% compounded monthly, what size should each payment be? The monthly payments are $. (Round to 2 decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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