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Bob Sarto Motor Company Wants to Accumulate $1,400,000 to Pay

Question 15

Essay

Bob Sarto Motor Company wants to accumulate $1,400,000 to pay off an equipment loan due in 2 years.
How much should Bob Sarto Motor Company deposit each month beginning one month from today in order to accumulate $1,400,000 if the bank pays 12% annual interest with monthly compounding?

Correct Answer:

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N = 24 (2 * 12) I/Y ...

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