Question

Question 7 Liberty City Electronics (LCE) receives a salvage value of $35,000 for the antiquated equipment at the end of year six. New equipment will cost LCE $175,000 and the company uses an interest rate of 20% per year compounded quarterly on this piece of equipment. How much money must the company set aside each quarter in order to have the total amount needed for the new equipment in year six? a. $2,700 b. $3,380 c. $11,690 d. $14,610

Answer 1

each utee set atide Let Cmpan fOmula nt APCI4 A Amount Painupl Amua Jndenest raf Namber f times jndest Js Fo qunder m= 43 me yes Salwage value 35,00 oo Jeft amaymt= Componded Value ,75 35,000 $140000 Ooo (と-9X6) ((-9X6 +u=,4 4X laD 4x100 OUO C1.05 Ouo Sum of geametk senes CI-A) 7 a a t azt asz?. -2 3 CI.05 CS Scanned with CamScanner

3 1,40,0 KX{4= 41.43) 1, 40, ,40 C 33 73.19 4 1.43 K3380 ço Ansuer(b)330 CS Scanned with CamScanner