Question: I need help with a homework problem . In 10 years a $40000 machine will have a salvage value of $40000. Anew machine at the

I need help with a homework problem .

In 10 years a $40000 machine will have a salvage value of $40000. Anew machine at the time is expected to sell for $52000. In order to provide funds fot the difference between the replacements cost and the salvage value, sinking fund is set up into which equal payments are placed at the end of each year. If the funds earns 7% compounded annually, how much should each payment be?

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