You estimates that your company will have to replace a piece of equipment at a cost of $950,000 in 3 years. To do this, a sinking fund is established by making equal quarterly payments into an account paying 6.5% compounded quarterly. How much should should each payment be? F R = - (1 + i)n − 1] i

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
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Chapter2: Second-order Linear Odes
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PROBLEM
7
You estimates that your company will have to replace a
piece of equipment at a cost of $950,000 in 3 years. To
do this, a sinking fund is established by making equal
quarterly payments into an account paying 6.5%
compounded quarterly. How much should each
payment be?
F
■
R=
=
(1 + i)n
i
1]
Transcribed Image Text:PROBLEM 7 You estimates that your company will have to replace a piece of equipment at a cost of $950,000 in 3 years. To do this, a sinking fund is established by making equal quarterly payments into an account paying 6.5% compounded quarterly. How much should each payment be? F ■ R= = (1 + i)n i 1]
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