The equipment is valued at pound100000 and interest rates, Finance Basics

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The equipment is valued at pound100000 and interest rates

A company makes fixed annual payments to a sinking fund to replace equipment in 5 years' time. The equipment is valued at £100,000 and interest rates are 12%. How much should each payment be? How would these payments change if the company could put an initial £10,000 into the fund?

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