Determine the size of each quarterly installment

Reference no: EM13180509

The management of Gibraltar Brokerage Services anticipates a capital expenditure of $20000 in 3 year for the purchase of new computers and has decided to set up a sinking fund to finance this purchase. If the fund earns interest at the rate of 10% year compounded quarterly, determine the size of each (equal) quarterly installment that should be deposited in the fund.

Reference no: EM13180509

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