Redflex Traffic Systems manages red light camera systems that take photographs of vehicles that run red lights.

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Redflex Traffic Systems manages red light camera systems that take photographs of vehicles that run red lights. Red light violations in Hereford County result in fines of $75 per incident. A two-month trial period revealed that the sheriff department could expect to issue 300 citations per month per intersection. Redflex has proposed installation of camera systems at 10 intersections. How much could the sheriff department afford to spend on the project if it wanted to recover the first cost in 2 years at an interest rate of 0.25% per month?

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