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A company estimates that a certain piece of machinery will have to be replaced in five years' time at a cost of R180 000. Equal, monthly payments are deposited into a fund, paying 12% p.a. compounded monthly at the end of each month for 5 years so as to realise the R180 000. The maintenance costs for the current machine are to be drawn from this fund every six months. The first maintenance withdrawal of R2000 is due one year from now and from the second withdrawal onwards, the maintenence cost will increase each half-year at a rate of 5% p.a. The last maintenance cost is due six months before the replacement of the machinery. The value of the monthly deposits ( to the nearest cent) is R type your answer..

A company estimates that a certain piece of machinery will have to be replaced in five years' time at a cost of R180 000. Equal, monthly payments are deposited into a fund, paying 12% p.a. compounded monthly at the end of each month for 5 years so as to realise the R180 000. The maintenance costs for the current machine are to be drawn from this fund every six months. The first maintenance withdrawal of R2000 is due one year from now and from the second withdrawal onwards, the maintenence cost will increase each half-year at a rate of 5% p.a. The last maintenance cost is due six months before the replacement of the machinery. The value of the monthly deposits ( to the nearest cent) is R type your answer..

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
ChapterP: Prologue: Calculator Arithmetic
Section: Chapter Questions
Problem 2TU: If the annual percentage rate is 8% and the interest is compounded monthly, what is the amount owed...
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A company estimates that a certain piece of machinery will have to be replaced in five years' time at a cost of R180 000. Equal, monthly payments are deposited into a fund, paying 12% p.a. compounded monthly at the end of each month for 5 years so as to realise the R180 000. The maintenance costs for the current machine are to be drawn from this fund every six months. The first maintenance withdrawal of R2000 is due one year from now and from the second withdrawal onwards, the maintenence cost will increase each half-year at a rate of 5% p.a. The last maintenance cost is due six months before the replacement of the machinery. The value of the monthly deposits ( to the nearest cent) is R type your answer.
Transcribed Image Text:A company estimates that a certain piece of machinery will have to be replaced in five years' time at a cost of R180 000. Equal, monthly payments are deposited into a fund, paying 12% p.a. compounded monthly at the end of each month for 5 years so as to realise the R180 000. The maintenance costs for the current machine are to be drawn from this fund every six months. The first maintenance withdrawal of R2000 is due one year from now and from the second withdrawal onwards, the maintenence cost will increase each half-year at a rate of 5% p.a. The last maintenance cost is due six months before the replacement of the machinery. The value of the monthly deposits ( to the nearest cent) is R type your answer.
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