Logarithms

A machine costs a company $65,000 and its effective life is estimated to be 25 years. A sinking fund is created for replacing the machine by a new model at the end of its life time, when its scrap realizes a sum of $2,500 only. Calculate what amount should be provided every year out of profits for the sinking fund if it accumulates at 3½ per cent per annum compound.

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