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Problem:
You are the financial manager of Wal-Mart who will submit a report on this year's (2013) financial transactions to the company's CFO Charles Holley. You want to verify that the following estimates prepared by your staff are correct.
Your department will set aside a lump sum fund this year in order to pay for a planned purchase of a $140,000-equipment in 2020. How much should be deposited this year to pay for this purchase if the current market interest rate is 3.50 percent on an annual basis? Staff Estimate: $80,000 (please verify)
Additional Information:
This question is basically belongs to Finance as well as it is about a scenario of Wal-Mart has been given. The financial manager of Wal-Mart has to submit a report upon the year's financial transaction of company. One of the departments desires to set aside a lump-sum amount to pay for equipment in 2020. The year's amount to be set aside requires to be computed.
Total Word Limit: 34 Words
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