Maintenance costs for a regenerative thermal oxidizer increased according to an arithmetic gradient for 5 years. The cost in year 1 was $7000. If the interest rate is 10% per year and the present worth of the costs for a 5-year period was $28,800, the amount of the yearly increase, G, was closest to: (a) $1670 (b) $945 (c) $620 (d) $330
Maintenance costs for a regenerative thermal oxidizer increased according to an arithmetic gradient for 5 years. The cost in year 1 was $7000. If the interest rate is 10% per year and the present worth of the costs for a 5-year period was $28,800, the amount of the yearly increase, G, was closest to: (a) $1670 (b) $945 (c) $620 (d) $330
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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Maintenance costs for a regenerative thermal oxidizer
increased according to an arithmetic gradient
for 5 years. The cost in year 1 was $7000. If the
interest rate is 10% per year and the present worth
of the costs for a 5-year period was $28,800, the
amount of the yearly increase, G, was closest to:
(a) $1670 (b) $945
(c) $620 (d) $330
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