A company buys a machine for $100,000. Its estimated life is 12 years and scrap value is $5000. What amount is to be retained every year from the profit and allowed to accumulate at 5% C.I. for buying a new machine at the same price after 12 years?

Solution

Problems: Logarithms

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Logarithms

A company buys a machine for $100,000. Its estimated life is 12 years and scrap value is $5000. What amount is to be retained every year from the profit and allowed to accumulate at 5% C.I. for buying a new machine at the same price after 12 years?

Solution

Problems: Logarithms

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