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The BETA Corp. has decided to enter the next generation in customer service. In order to do so they need to purchase a new piece of equipment. The equipment is highly specialized and needs to be created to exact specifications. As a result it will take at least 14 months for the equipment to be ready for installation and will cost a total of $230,000. BETA Corp. wants to set aside the money it needs for the equipment today. Being extremely conservative the company will be placing the funds it needs for the purchase into a GIC with a rate of 4% compounded Monthly.
How much money are they setting aside today?
=___________
What would the interest rate be if they only needed to save $214,986.59 at the beginning?
=____________ (Input as a percentage without the % sign)(Remember (-) where appropriate)
How much would they need if they had more time to allow money to grow such as if the equipment would be ready in 6.5 Years at a rate of 4% Compounded Monthly?
=____________
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