The owner of a ski resort estimates that a new 4-person ski lift will cost $4,000,000. The owner begins making payments on March 1 and every three months thereafter for 5 years into an account that earns 5% annual interest compounded quarterly. What payment amount must the owner make to have the cost of the ski lift in 5 years? (Round your answer to the nearest cent.)

The owner of a ski resort estimates that a new 4-person ski lift will cost $4,000,000. The owner begins making payments on March 1 and every three months thereafter for 5 years into an account that earns 5% annual interest compounded quarterly. What payment amount must the owner make to have the cost of the ski lift in 5 years? (Round your answer to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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