A small business has determined that the machinery they currently use will wear out in 17 years. To replace the new machine when it wears out, the company wants to establish a savings account today. If the interest rate on the account is 1.1 percent per quarter and the cost of the machinery will be $255,000, how much will the company have to deposit today?

Answer rating: 100% (QA)

In this case the interest rate is given as 11 percent per quarter ... View the full answer