Howton amp sons just purchased a piece of investment, Financial Management

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Howton amp sons just purchased a piece of investment

Howton & Sons just purchased a piece of investment property. At the end of year 6, the company will begin paying city development fees of $17934 per year. The company will pay the fees for 8 years, at which point the property will be sold. How much should the company set aside today, in an account paying an annually compounded interest rate of 4%, to pay for the future development fees?

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