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The Gentle Warming Company is purchasing a new cooling system. To pay for the system, the company agrees to make 12 installment payments of $6573
The Gentle Warming Company is purchasing a new cooling system. To pay for the system, the company agrees to make 12 installment payments of $6573 per year, beginning at the end of year 1. The company also has to pay a system fee of $2101 that will begin at the end of year 1 and decrease by $112 per year until the system is paid off. How much should the company set aside today to pay for the cooling system if the bank pays 3% per year compounded annually? Enter your answer as follows: 12345 Round your answer. Do not use a dollar sign ("$"), any commas (", ") or a decimal point ("."). How much do you have to deposit today in order to allow 7 annual withdrawals, beginning at the end of year 20, with a first withdrawal of $1038 and with subsequent withdrawals decreasing at the rate of 2% over the previous year's withdrawal? Assume an interest rate of 5% compounded annually. Enter your answer as: 1234 Round your answer. Do not use a dollar sign ("$"), any commas (", ") or a decimal point (".")
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