A metal plating company wants to set aside money now to prepare for a lawsuit it expects to face in four years. If the company wants to have $1,000,000 available at that time, how much must it set aside now in one lump sum if the account will earn 1% per month?
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An expenditure for maintaining a bridge occurs in five-year cycles. If the cost is $100,000 now and $100,000 every five years forever, the capitalized cost of this expenditure at 10% per year is nearest to
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A wealthy alumna of a small university wanted to establish a permanent endowment in her name that would provide scholarships of $10,000 per year starting 20 years from now. If the university can invest money at an interest rate of 8% per year, the amount of money that must be donated now is nearest to
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