Question: A business sets up a sinking fund so they will have a $50,000.00 to pay for a replacement piece of equipment in 10 years when

  • A business sets up a sinking fund so they will have a $50,000.00 to pay for a replacement piece of equipment in 10 years when the current equipment will be sold for scrap. If they make deposits at the end of every 2 months for 10 years in the investment that pays 5.9% compounded every 2 months, what size should each payment be? If needed, round to 2 decimal places.



 

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