AS DETAILED AS POSSIBLE THX

As the finance director of a company, you have identified a profitable investment to be undertaken four years from now that will cost 240,000. While it is likely that the company could borrow the sum necessary to fund the investment you would prefer to finance the investment internally from retained earnings. You would like to know how much it would be necessary to save each year for the next four years if you have established that the savings could be invested to earn an interest rate of 6 per cent per annum. Determine the annual savings necessary to accumulate 240,000 by the beginning of year four