. A company wishes to save up to purchase state-or-the-art inspection system currently worth $510,000, How much would the company have to deposit monthly into an account that pays 7.25% per year...

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. A company wishes to save up to purchase state-or-the-art inspection system currently worth $510,000, How much would the com

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Answer 1

Answer #1

cost of equipment after 4 years with 2.8% inflation is:

C = 510,000*1.028^4 = 569,560

Monthly interest rate:

$r = 7.25/12 = 0.6042\%$

For this the final amount for an EMI is given by the formula:

$A = EMI*(\frac{(1+r)^{nY} - 1}{r})$

A = 569,560; r= 0.006042;Y = 4;n = 4(Quarterly)

$569,560 = EMI*(\frac{(1+0.006042)^{4*4} - 1}{0.006042})$

This gives monthly payment as:

$EMI = 34,012\$

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Answer 2

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