It costs $30,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel. if the station makes a profit of $0.09 per gallon from selling E85 and sells an average of 25,000 gallons of E85 per month, how many months will it take for the owner to recoup her 30,000 investment in the retrofitted pumps? the interest rate is 2% per month. How would you do this with an interest chart and a calculator
It costs $30,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel. if the station makes a profit of $0.09 per gallon from selling E85 and sells an average of 25,000 gallons of E85 per month, how many months will it take for the owner to recoup her 30,000 investment in the retrofitted pumps? the interest rate is 2% per month. How would you do this with an interest chart and a calculator
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
It costs $30,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel. if the station makes a profit of $0.09 per gallon from selling E85 and sells an average of 25,000 gallons of E85 per month, how many months will it take for the owner to recoup her 30,000 investment in the retrofitted pumps? the interest rate is 2% per month. How would you do this with an interest chart and a calculator
Transcribed Image Text:It costs $30,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel (85% ethanol and 15% gasoline). If the station makes a profit of S0.09 per gallon from selling E85 and sells an average
of 25,000 gallons of E85 per month, how many months will it take for the owner to recoup her $30,000 investment in the retrofitted pumps? The interest rate is 2% per month.
Click the icon to view the interest and annuity table for discrete compounding when i= 2% per month.
1 More Info
It will take
| months to recoup the investment. (Round up to the nearest whole number.)
Given P
Given F
Given A
Given A
Given F
Given P
F/P
P/F
FIA
P/A
A/F
A/P
1
1.0200
0.9804
1.0000
0.9804
1.0000
1.0200
0.4950
0.3268
0.2426
0.1922
0.1585
0.1345
0.1165
0.1025
0.0913
0.0822
0.0746
0.0681
0.0626
0.0578
2
1.0404
0.9612
2.0200
3.0604
1.9416
2.8839
0.5150
3
1.0612
0.9423
0.3468
1.0824
1.1041
1.1262
3.8077
4.7135
5.6014
6.4720
7.3255
8.1622
8.9826
9.7868
0.2626
0.2122
0.1785
4
0.9238
4.1216
5.2040
6.3081
5
0.9057
0.8880
7
1.1487
1.1717
0.8706
7.4343
0.1545
0.1365
0.1225
0.1113
0.8535
0.8368
0.8203
0.8043
0.7885
0.7730
0.7579
8.5830
9.7546
10.9497
12.1687
8
9
1.1951
10
1.2190
11
1.2434
1.2682
0.1022
0.0946
0.0881
0.0826
0.0778
12
13.4121
10.5753
1.2936
1.3195
1.3459
14.6803
15.9739
17.2934
13
11.3484
14
12.1062
15
0.7430
12.8493
16
1.3728
0.7284
18.6393
20.0121
13.5777
0.0537
0.0737
1.4002
1.4282
17
0.7142
0.7002
0.6864
0.6730
0.6598
14.2919
0.0500
0.0467
0.0438
0.0412
0.0388
0.0700
0.0667
0.0638
0.0612
0.0588
21.4123
22.8406
14.9920
15.6785
16.3514
17.0112
18
19
1.4568
1.4859
1.5157
1.5460
1.5769
1.6084
1.6406
1.8114
2.0399
20
24.2974
21
25.7833
22
0.6468
27.2990
28.8450
17.6580
0.0366
0.6342
0.6217
0.6095
0.5521
0.0566
0.0547
0.0529
0.0512
0.0446
18.2922
18.9139
23
0.0347
30.4219
0.0329
0.0312
0.0246
0.0192
0.0166
0.0126
24
19.5235
22.3965
25
32.0303
40.5681
51.9944
30
36
0.4902
25.4888
0.0392
0.4529
0.3865
40
2.2080
60.4020
27.3555
0.0366
0.0326
48
2.5871
79.3535
30.6731
Enter your answer in the answer box.
60
3.2810
0.3048
114.0515
34.7609
0.0088
0.0288
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