5. a.Koslovsky Corporation wants to accumulate a fund to replace its equipment in 8 years. If it invests $400,000 today at 8%, what amount will it have in 8 years? b.Assume the same facts as in...

5.

a.Koslovsky Corporation wants to accumulate a fund to replace its equipment in 8 years. If it invests $400,000 today at 8%, what amount will it have in 8 years?

b.Assume the same facts as in (a) except that Koslovsky invests $50,000 per year. What amount will it have in 8 years?

6.Santander Enterprises has purchased new equipment on a long-term payment plan. The contract calls for Santander to pay $50,000 at the end of each year for 6 years, at an interest rate of 8%. At what amount should Santander record this equipment and what total amount of interest will it pay over the 6 years?