On February 1, the Miro Company needs to purchase some office equipment. The company is presently short

Question:

On February 1, the Miro Company needs to purchase some office equipment. The company is presently short of cash and expects to be short for several months. The company treasurer has indicated that he could pay for the equipment as follows:
Date Payment
April 1 .................................... $150
June 1 ..................................... 300
Aug. 1 ..................................... 450
Oct. 1 ...................................... 600
Dec. 1 ..................................... 750
A local office supply firm will agree to sell the equipment to the firm now and accept payment according to the treasurer's schedule. If interest will be charged at 3% every 2 months, with once every 2 months, how much office equipment can the Miro Company buy now?
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...