The management of Gibraltar Brokerage Services anticipates a capital expenditure of $26,000 in 3 years for the purchase of new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns interest at the rate of 2%/year compounded quarterly, determine the size of each (equal) quarterly installment that should be deposited in the fund.

Answer rating: 100% (QA)

To determine the size of each quarterly installment that should be deposited in the sinki... View the full answer