Question
The Asia market is planning to replace the store machinery for a total cost of $191,514 to be paid 14 years from today. They plan
The Asia market is planning to replace the store machinery for a total cost of $191,514 to be paid 14 years from today. They plan to spread the cost out over time by making incremental savings deposits into an account. The first deposit of $16,551 will be made 3 years from today, the second payment of $12,155 will be made 4 years from today, and $12,131 will be deposited 11 years from today. They plan to make one more deposit in 7 years from today. How much must they deposit in 7 years to exactly cover the cost of the store machinery? The store machinery earns 4.25% on deposits.
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