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Question : You own a company with manufacturing equipment that has to

You own a company with manufacturing equipment that has to be replaced periodically. You decide to set up a fund that will accumulate enough money to replace the equipment. This fund receives 3% of the company's annual revenue and earns 5% interest, compounded annually. If the company revenues are $5 million per year and the equipment needs to be replaced every 8 years, how much money will be available in the fund for equipment replacement?

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