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Mathematics 13 Online
OpenStudy (anonymous):

A paper company is considering the purchase of a forest that is estimated to yield an annual return of $60 000 for 8 years, after which the forest will have no value. The company wants to earn 6% on its investment and also set up a sinking fund to replace the purchase price. If money is placed in the fund at the end of each year and earns 4% compounded annually, find the price the company should pay for the forest.

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