A company wants to accumulate tsh 100000 to purchase replacement machinery 8years from know.to accomplish this equal semi-annually payments are made to a fund that earns 7%compounded semi-annually.find the amount of each payment

Question

A  company  wants  to  accumulate tsh  100000 to  purchase  replacement  machinery 8years  from  know.to  accomplish  this  equal semi-annually payments are  made to a fund  that  earns  7%compounded semi-annually.find  the  amount of  each payment

Reiny · Answer

let the payment be P P (1.035^16 - 1)/.035 = 100000 solve for P on your calculator you should get around ($4770 , not the exact answer so you will still have to do the calculation yourself)