A machine costs P20,000 today and has an estimated scrap value of P2,000 after 8 years. Inflation is 8% per year. The effective annual interest rate earned on money invested is 8%. How much money needs to be set aside each year to replace the machine with an identical model 8 years from now?
A machine costs P20,000 today and has an estimated scrap value of P2,000 after 8 years. Inflation is 8% per year. The effective annual interest rate earned on money invested is 8%. How much money needs to be set aside each year to replace the machine with an identical model 8 years from now?
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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A machine costs P20,000 today and has an estimated scrap value of P2,000 after 8 years. Inflation is 8% per year. The effective annual interest rate earned on money invested is 8%. How much money needs to be set aside each year to replace the machine with an identical model 8 years from now?
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