Amit Cheeda has a welding business that primarily services heavy equipment on highway construction projects. Amit plans to replace equipment in 5 years, but he does not want to borrow the money. Therefore, he makes 20 quarterly deposits into a sinking

fund that will earn 6% compounded quarterly. How much should Amit deposit each quarter if he wants to have $50,00 . after the 5 years? Use Tables 23-1A and 23-1B or a calculator.

$50,00 . ÷ 23.12367 = $2,162.29 quarterly payments