Question: A company wants to replace a machine in 15 years that will cost $10,000. It does this by setting up a sinking fund of $300

A company wants to replace a machine in 15 years that will cost

$10,000. It does this by setting up a sinking fund of $300 per year. What is the closest interest rate that will make this happen?

(a) 10%

(b) 10.5%

(c) 11.2%

(d) 11.6%

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