Math Problem Statement
Demco Products, a company that manufactures stainless steel control valves, has a fund for equipment replacement that contains $500,000. The company plans to spend $85,000 each year on new equipment.
Estimate the number of years it will take to reduce the fund to zero at an interest rate of 9.00% per year.
The number of years is estimated to be between and .
Solution
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Future Value of Annuity
Formulas
Future Value of Annuity with Withdrawals
Theorems

Suitable Grade Level
Advanced
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