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What size deposits should they be making instead

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Luxury Rides Taxi Service must replace cars every 5 years at a cost of $450,000. The company is considering depositing $4,000 at the end of each month at 9% per year compounded monthly. Confirm your answer using EXCEL.

Will they meet the target with this strategy? Explain. If your answer is no, what size deposits should they be making instead?

Reference no: EM131943970

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