Question
16. If a company invests $25,000 now in a software package, how much must be saved each year to recover the investment in 10 years
16. If a company invests $25,000 now in a software package, how much must be saved each year to recover the investment in 10 years at a compound interest rate of 10% per year?
Assume that the savings starts in year 1 and continue to year 10.
(All the alternatives presented below were calculated using compound interest factor tables including all decimal places)
| a. | $9,638 |
| b. | $2,915 |
| c. | $1,569 |
| d. | $4,069 |
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The Repo Handbook
Authors: Moorad Choudhry
1st Edition
0750651628, 978-0750651622
