Question

An estate agency purchases a machine for R85000 and realize they will have to replace it in 4yrs.they predict that the inflation rate will be 8%p.a and their machine will depreciate at a rate of 6%p.a. They create a sinking fund to take care of the inflation rate assuming that they will trade in their present machine.what amount of must be paid into the fund if the interest rate is 12%p.a compounded monthly