The math department purchased a copy machine for $ 12000. after 5 years, the machine will be worthless. how much money should the department deposit at the end of each quarter, if the money is worth 8% compounded quarterly, in order to save enough to buy a new copy machine at the end of 5 years?

money that department deposit is $402.98

Explanation:

given data

amount = $12000

time = 5 year

rate = 8%  compounded quarterly

to find out

How much money should the department deposit at the end of each quarter

solution

we will use here equation that is

amount = principal ×    ................1

here r is rate that is = 4% = 0.04 and t is time i.e 5 × 4 = 20

so put all these value in equation 1 we get

12000 = principal ×

principal = 402.98

so money that department deposit is $402.98

it should be