You are purchasing a new machine every 5 years. The new machine costs $55000. You want to start depositing a fixed amount an January, March, May, etc.). If the interest rate is 6%, what amount would you deposit every time to save $55000 at the end of the 1581.15 855.72 1565.49 None of the other 3 answers

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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You are purchasing a new machine every 5 years. The new machine costs $55000. You want to start depositing a fixed amount at the beginning of every other month (e.g..
January, March, May, etc.). If the interest rate is 6%, what amount would you deposit every time to save $55000 at the end of the 5th year?
1581.15
855.72
1565.49
None of the other 3 answers
Transcribed Image Text:You are purchasing a new machine every 5 years. The new machine costs $55000. You want to start depositing a fixed amount at the beginning of every other month (e.g.. January, March, May, etc.). If the interest rate is 6%, what amount would you deposit every time to save $55000 at the end of the 5th year? 1581.15 855.72 1565.49 None of the other 3 answers
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