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6. Your firm is saving to replace equipment at a future date. Each year $50,000 is placed in a bank account that pays 2.5% interest.
6. Your firm is saving to replace equipment at a future date. Each year $50,000 is placed in a bank account that pays 2.5% interest. Assume the money will be withdrawn and equipment replaced after five years of annual investments. How much money will be available in the future? (2 points) a. Which equation should be used to solve the problem (number)? b. What is the total amount of money available after five years for replacement equipment? c. What is the amount your firm earns from the interest paid by the bank for using your money
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