A contractor offers to purchase your old tractor for ETB10,000 but cannot pay you the money for 12 months. If you feel i=1% per month is a fair interest rate, what is the present worth to you today of the $10,000 if it is paid 12 months from now

What nominal rate per 6-months is equivalent to an effective rate of 11% per year, compounded continuously? The nominal rate per 6-months that is equivalent to an effective rate of 11% per year, compounded continuously is 5.65 %.

A company that manufactures air-operated drain valve assemblies currently has $110,000 available to pay for plastic components over a 5-year period. If the company spent only $42,000 in year 1, what uniform annual amount can the company spend in each of the next 4 years to deplete the entire budget? Let i = 13% per year.   The uniform annual amount the company can spend is $.