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4 date of purchase) Bloggs Ltd has to replace its widget-making machine in five years. The company estimates the new machine will cost $30 000.

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4 date of purchase) Bloggs Ltd has to replace its widget-making machine in five years. The company estimates the new machine will cost $30 000. It wishes to provide for this machine by putting aside a regular annual amount in a reserve. Natbank has offered the company two options: a Deposit five equal amounts at the beginning of each year to earn 5 per cent compound interest. b Deposit five equal amounts at the beginning of each year to earn an increasing compound interest rate of 2.5 per cent for the first year and increasing by 1 per cent each year after that Which option allows the company to put the least annual amount into a reserve, and what is that annual amount

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