A machine that costs $5000 is to be replaced in 5 years by a new one....

A machine that costs $5000 is to be replaced in 5 years by a new one. The old machine at that time would be worth $500. How much should the periodic payments be so that there will be enough money to buy a new machine (at the same price) if equal payments are made at the end of each semi-annual period at an annual interest rate of 6% compounded semi-annually? R= Answer Suppose an annual interest rate of 8% compounded semi-annually is used. What is the decreased semi-annual payment?

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milcah answered 1 year ago

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