Manhattan has decided to obtain a new fire truck in 5 years time at a cost of $120000. The bank is willing to give a special interest rate of 12%, compounded quarterly, to the fire department for this purchase and the Manhattan has agreed to give a yearly donation of $2900 payable at the end of each year for the next 5 years towards the purchase of the new fire truck. The Manhattan currently has $5000 that will be used to purchase the new fire truck, the old truck is expected to have a salvage value of $12000 5 years, and the rest of the required moneys will be earned through 4 fundraisers per year. 

How much money does each fundraiser need to generate to cover the cost of the new fire truck?

Answer rating: 100% (QA)

To calculate how much money each fundraiser needs to generate to cover the cost of the new fire truc... View the full answer