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Question :-

An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000. Answer the question using a straight line depreciation and a 10% interest rate. How much money should be set aside today to have $20,000 available eight (8) years from now if the interest rate is 6% compounded annually?
$31,875
$12,550
$29,600
$13,515

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