The annual maintenance cost of a generator is P1000 after 1 year and it is estimated to increase 10% each year for the subsequent 7 years. Find the present worth of the maintenance cost if the rate interest is 9% compounded annually

Q: Calculate the perpetual equivalent annual cost (years 1 to ∞) of $825,000 now and $1,000,000, 8…

A: Cost now (C0) = $ 825,000 Cost after 8 years (C8) = $ 1,000,000 Period (n) = 8 Years Interest rate…

Q: What is the future value of $1000 in 10 years if the interest is compounded at 6% annually ?

A: Future Value  Future value  is the worth of any asset or any sum of money at a future date when such…

Q: An investment pays an annual cash flow of $1 forever. The appropriate discount rate is 4% per year.…

A: Annual cash flow (C) = $1Discount rate (r) = 0.04Present value = ?Present value will be the…

Q: what is the present value of 54,000 paid at the end of each of the next 96 years if the interest…

A: Yearly Payment (P) = 54,000Number of years (n) = 96Interest rate (r) = 3% or 0.03We can use the…

Q: If P60,000 is due at the end of 4 years at 5% compounded annually. What is the present value?

A: Present value is the value of future cash-flow today. In other words the current value of the…

Q: An investment product promises to pay $500 at the end of the fifth year (year 5), and the payment…

A: Perpetuity:It shows the present value of the cash flows which are payable at equal intervals…

Q: Give an annual opportunity cost of 10%,what is the future value of a $3,000 ordinary annuity for 10…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: amount of funding now is equivalent to the amount in one year as it grows be compound interest rate.…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: What is the future value of a stream of receipts that is $1,000 in year 1 and which increases by 4%…

A: The future value of this stream of receipts can be calculated using the future value of an annuity…

Q: If money is worth 5% compounded quarterly , find the future worth of a sequence of 12 semi annual…

A: N = 12 PMT = 1000 rate = (1 + 5%/4)2 - 1 = 2.5156% PV = 0 use FV function in Excel

Q: The annual maintenance cost of a generator is P834 after 1 year and it is estimated to increase by…

A: Annual Maintenance Cost = 834 End of period cost structure Increase in annual maintenance costs =…

Q: How much was initially invested if the value of the investment is at P200,000 after 3 and a half…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: What is the future equivalent of 10,000 per year that flows continously for 8.5 years if the nominal…

A: The following information has been provided in the question: Present value= 10000 per year Time =8.5…

Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…

A: Interest is the cost of borrowing the money.

Q: RM 200 is invested every month for 2 years 7 months at 10 % compounded monthly. What is the future…

A: Monthly investment (P) = RM 200 Period = 2 Years and 7 Months Monthly period (n) = (2*12)+7 = 24+7 =…

Q: Compute the present value of a perpetual investment that would pay P25,000 every year if the…

A: To calculate the present value we will use the present value of perpetuity formula as follows:…

Q: An annuity of 41,431 is to be paid in 5 years at the rate of 4% compounded continuously. What is the…

A: There are investments made by the company for the purpose of gaining financial returns. These would…

Q: In a series of payments at the end of the period, the first payment is 200 TL, the second payment is…

A: The first payment is 200 TL. The payment decreased by 20 TL. The annual effective interest rate is…

Q: At what annual interest​ rate, compounded​ annually, would ​$510 have to be invested for it to grow…

A: Investment amount (PV) = $510 Future value (FV) = $1961.97 Period (n) = 15 Years

Q: Compute to the penny the present value of $5,000 dollars to be paid at the end of four years if (a)…

A: Future value is a financial concept that refers to the projected value of an investment or asset at…

Q: What will be the future worth of series of 15 annual $100 payments if the nominal annual interest…

A: An interest rate method in which current interest is computed by multiplying the interest rate by…

Q: ll take n years, t months and u days to pay off a $1000 loan if $100 is paid at the end of every…

A: Loans are paid by equal periodic payments that carry the payment for interest and loan.

Q: If 2400 dollars is invested in an account for 10 years. Find the value of the investment at the end…

A: Future value(FV) is the value of initial investments at a future date after compounding it with a…

Q: At an interest rate of 10% per year, determine the perpetual equivalent annual cost of: $70,000 now,…

A: The cash flows that are started immediately after the investment and go on for an infinite time…

Q: You estimate your monthly gas and maintenance expenses for your delivery vehicles will be $1,500 a…

A: Monthly expenses (P) = $ 1500 Period = 7 Years Period in months (N) = 7*12 = 84 Annual interest rate…

Q: Calculate the future value (FV) in 6 years time of £600 invested at 12% nominal annual interest, if…

A: Future value is the compounded value of a present sum of money compounded at a given interest rate…

Q: Calculate the present worth of the money if the ₱ 300.00 is invested at the end of each year for 8…

A: Present value can be calculates as follows = 1/(1+r)^1+ 1/(1+r)^2 + 1/(1+r)^3 + 1/(1+r)^n Here the…

Q: Consider a loan of 1,000,000 which is to be amortized by 60 monthly payments. The interest rate is…

A: Monthly payment is the portion of the loan amount along with the interest that is paid every month.…

Q: A. What is the value of the annuity 5 years from now? B. What is the current value of the annuity?

A: Solution:- Given, A 5-year annuity of ten = $50,000 semi annul payments  Begin 9 years from now,…

Q: You are offered payments of P1500.00 att he end of each quarter for 6 years. You feel that the cost…

A: The present value of future and periodic cash flows is the value of these cash flows at the present…

Q: Assume annual car payments of $6000 for 4 years and an interest rate of 9% per year. What initial…

A: Given that, Annual Payment (A)=$6,000 Duration (n)=4years Rate of interest (i)=9% or 0.09

Q: Find the future value of 100 Rials compounded continuously at an annual rate of 6% for 12 years.…

A: The Future value when the interest rate is compounded continuously shows the future value of the…