The company you work for assumes that a piece of equipment will need to be replaced in 10 years. They assume the replacement will be $75,000. The company plans to put $20,000 in an account today and then make annual payments for the next ten years. How much will they need to put away each year, assuming a 5% annual interest rate?

Answer rating: 100% (QA)

To calculate the annual payment required we can use the present value of an annuity formula The pres... View the full answer