A company needs to buy a building in 4 years, and must fund the down payment from its prots The purchase will cost $280,000, of which the company can nance (borrow from the bank) $200,000 at 7 If the company must make the purchase in 4 years and can receive 7 APR on its savings compounded annually ...

To calculate the amount the company must save each year to have the required down payment in 4 years ...

A company needs to buy a building in 4 years, and must fund the down payment from

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A company needs to buy a building in 4 years, and must fund the down payment from its proﬁts. The purchase will cost $280,000, of which the company can ﬁnance (borrow from the bank) $200,000 at 7%. If the company must make the purchase in 4 years and can receive 7% APR on its savings compounded annually.

How much must the company save each year to have the required down payment in 4 years?