Question: Problem 9. How much money needs to be set aside today to purchase a new piece of equipment in five years? The money is

Problem 9. How much money needs to be set aside today to

Problem 9. How much money needs to be set aside today to purchase a new piece of equipment in five years? The money is expected to eam 5% interest compounded annually and the price of the equipment is expected to increase by 2% par year. The present cost of the equipment is $100,000.

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