Plant World Landscaping buys new lawn equipment every 3 years.
Plant World Landscaping buys new lawn equipment every 3 years. It is estimated that $25,000 will be needed for the next purchase. The company sets up a sinking fund to save for this obligation.
a. What equal payments must be deposited every 6 months if interest is 8% compounded semiannually?
b. What is the total amount of interest earned by the sinking fund?