Solved: You plan to save for this purchase using a sinking fund, Business Management

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You plan to save for this purchase using a sinking fund

You will need to replace a fence post molding machine that sells for $23,000.00. You estimate that you will need to purchase a new machine in 3 years' time as this machine reaches the end of its useful life. You plan to save for this purchase using a sinking fund that compounds quarterly and earns a 7.2% annual rate.

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