An accounting firm agrees to purchase a computer for $180,000 (cash on delivery) and the delivery date is in 270 days. How much do the owners need to deposit in an account paying 0.65% compounded quarterly so that they will have $180,000 in 270 days? (a) State the type. future value ordinary annuity amortization present value sinking fund (b) Answer the question. (Round your answer to the nearest cent.) $
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In this case, the owners need to deposit a certain amount in an account so that they will have $180,000 in the future. This is a present value calculation. Show more…
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