Establishes sinking fund to replace equipment

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Reference no: EM131859970

Suppose that a company establishes a sinking fund to replace equipment at an estimated cost of $100,000 in 9 years. How much should be invested each month into an account that pays 12% interest compounded monthly in order to finance the equipment in 9 years? Round your answers to the nearest cent.

Reference no: EM131859970

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