Question: A company estimates that it will have to replace a piece of equipment at a cost of $600,000 in 7 years. To have this money

A company estimates that it will have to replace a piece of equipment at a cost of $600,000 in 7 years. To have this money available in 7 years a sinking fund is established by making equal monthly payments into an account paying 4.8% monthly.

How much should each payment be?

How much interest is earned during the last year?

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