SOLUTION: A firm anticipates a capital expenditure of $10,000 for new equipment in 5 years. How much should be deposited quarterly in an account earning 10 % interest per year, compounded qu

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Question 729570: A firm anticipates a capital expenditure of $10,000 for new equipment in 5 years. How much should be deposited quarterly in an account earning 10 % interest per year, compounded quarterly to provide for the purchase?
Found 2 solutions by lynnlo, ikleyn:
Answer by lynnlo(4176) About Me  (Show Source):
Answer by ikleyn(53419) About Me  (Show Source):
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A firm anticipates a capital expenditure of $10,000 for new equipment in 5 years.
How much should be deposited quarterly in an account earning 10 % interest per year,
compounded quarterly to provide for the purchase?
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It is about finding the present value of the compounded account.


The present value is  10000%2F%281%2B0.1%2F4%29%5E%284%2A5%29 = 6102.71  (rounded to the closest cent).    ANSWER
Solved.