Question
STATUS: An owner is considering purchasing new machinery to increase the production capacity of his business. Of this purchase money in a bank account with
STATUS: An owner is considering purchasing new machinery to increase the production capacity of his business. Of this purchase money in a bank account with some of the planned collections that will take place within a year to finance plans to save and buy the machine at the end of the year. The savings plan of the business owner is summarized as follows.
It will start to accumulate by depositing a certain amount (X TL) into the account at the beginning of the relevant year (time zero),
e 10000 (ten thousand) TL from the collections to be made at the end of the day,
* 20000 (twenty thousand) TL from the collections to be made at the end of 2 months,
* 50000 (fifty thousand) TL from the collections to be made at the end of the 3rd month,
e 40 thousand (40000 * 5) TL from the monthly collections (4, 5, 6, 7 and 8 months) for the 5 months after the 3rd month,
No further accumulation (depositing money) will be made in the remaining months. The machinery will be purchased at the end of the year (at the end of the 12th month) in which the accumulation planned in this way takes place. But the machine cost will not be paid immediately, and in accordance with the agreement made with the seller, at the end of each second month of the year following the purchase (i.e. the second year At the end of the 2.4, 6, 8, 10 and 12 months) 75000 (seventy five thousand) TL from the account in equal installments (when necessary) will be paid by drawing. QUESTION: In order for the savings made to meet the specified plan for the payment of the price of the machine, the owner of the business will be charged by the bank at the beginning of the accumulation. How much should the first amount G be deposited in his account at least? REQUIRED INFORMATION: The amount in the bank account where the savings is made is paid monthly with an annual interest (APR) of 9627. NOTE: Until the last payment of the machine price is made, the remaining amount in the accumulated account will continue to be paid.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started