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The management of Gibraltar Brokerage Services anticipates a capital expenditure of $25,000 in 2 yr for the purpose of purchasing new computers and has decided
The management of Gibraltar Brokerage Services anticipates a capital expenditure of $25,000 in 2 yr for the purpose of purchasing new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns interest at the rate of 12%/year compounded quarterly, determine the size of each (equal) quarterly installment that should be deposited in the fund. (Round your answer to the nearest cent.)
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