A company plans to start a sinking fund so that it will have…

A company plans to start a sinking fund so that it will have money to purchase a new 18-wheler ten years from now. The cost of the truck is expected to be $200,000 and the company uses an interest rate of 10% per year. If the company makes the first deposit one year from now, how much should each deposit be:

A small company wants to deposit a single amount of money no…

A small company wants to deposit a single amount of money now so that it will have enough to purchase a new truck costing $50,000 five years from now. If the money can be deposited into an account which earns interest at 10% per year, the amount that must be deposited is: