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# Your company will be buying new equipment starting 6 years from today. The equipment will cost \$2,500,000 payable in five equal annual installments....

12.  Your company will be buying new equipment starting 6 years from today. The equipment will cost \$2,500,000 payable in five equal annual installments. Already the company has set aside \$500,000. How much additional does the company need to set aside each year over the next 5 years assuming it can earn 7% interest? (Treat this as an ordinary annuity.)

• This is what it given as answer how do I get this answer by using the TI 84? PV5 = \$2.05M (present value of \$0.5/yr for 5 yrs @ 7%) FV5 = \$0.70M (future value of \$0.5m, @7% for 5 years) FV5 = \$1.35M future value of ? @ 7% for 5 years = \$0.23M/yr
• Nov 04, 2018 at 11:35am
• My apologies, I am well versed with the equation and excel method, not the calculator. You can try the PMT calculation by input similar to the excel method shown in method 2 as FV is 2.5 million, PV is 0.5 nper 5yrs rate 7%
• payaljain3
• Nov 04, 2018 at 7:48pm

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