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?