Suppose a truck costing $36,000 is to be replaced at the end of 10 years,at which time it will have a resale value of $12,000.In order to provide money at the time for a new truck costing $40,000,a sinking fund is set up into which equal payments are placed at the end of every six months.If the fund earns 6% compounded semiannually,what should each payment be?

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The Answer of Suppose a truck costing $36,000 is to be replaced at the end of 10 years,at which time it will have a resale value of $12,000.In order to provide money at the time for a new truck costing $40,000,a sinking fund is set up into which equal payments are placed at the end of every six months.If the fund earns 6% compounded semiannually,what should each payment be?

Suppose a Truck Costing $36,000 Is to Be Replaced at the End