A village recently completed the construction of a new water tower. The entire cost of the water tower was $948,000, and the government paid $360,000 of the total cost through the awarding of a grant. In addition, the village can delay paying the balance of the cost for 40 years (without paying any interest during the 40 years). To finance the balance, the village board will at this time assess its 511 homeowners a one-time flat fee surcharge and then invest this money in a 40-year CD paying 7.1% interest compounded monthly. Complete parts (a) through (c) below. a) What is the balance due on the water tower? $ b) How much will the village need to invest at this time to raise the balance due in 40 years? (Round to the nearest cent as needed.) $ c) What amount should each homeowner pay as a surcharge? $

A village recently completed the construction of a new water tower. The entire cost of the water tower was $948,000, and the government paid $360,000 of the total cost through the awarding of a grant. In addition, the village can delay paying the balance of the cost for 40 years (without paying any interest during the 40 years). To finance the balance, the village board will at this time assess its 511 homeowners a one-time flat fee surcharge and then invest this money in a 40-year CD paying 7.1% interest compounded monthly. Complete parts (a) through (c) below. a) What is the balance due on the water tower? $ b) How much will the village need to invest at this time to raise the balance due in 40 years? (Round to the nearest cent as needed.) $ c) What amount should each homeowner pay as a surcharge? $

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 45P

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