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: Find the present value of the following annuities: 500 payable semi-annually for 10 years if the…

A: Solution:- When an equal amount is paid each period, it is called annuity. Present value of annuity…

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: A sum of money invested now at 10 percent compounded semi-annually is to provide payments of $1500…

A: Let the money to be invested now = X Semiannual payment (A) = $1500 Number of payments (n) = 16 r =…

Q: What is the present value of annual payments of $2,000 for 12 years at 1 percent?

A: The present value (PV) is the current value of a future sum of money or cash flow, taking into…

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: Find the future value of the following at a given annual rate compounded annually and the given…

A:

Q: Suppose you invested $1000 every 3 months over a 15 year period. If money earns an annual rate of…

A: Compound = quarterly = 4Payment = p = $1000Time = t = 15 * 4 = 60Interest rate = r = 6.5 / 4 =…

Q: $15,000 is invested for 5 years at an annual simple interest rate of 17%. a) what will you earn in…

A: Interest = Principal * Rate * Time

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: 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: 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: What is the future value of $20 a week for 10 years at 6% interest? Assume the first payment occurs…

A: Number of weeks in 10 years = 10 x 52 = 520 Interest rate per week = 6%/52 = 0.1153846% =…

Q: What is the value today of receiving $4, 500 at the end of each year for the next 6 years, assuming…

A: Present value is the equivalent value of the future money based on time value of money that is…

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: 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 expect to receive $50,000 from your superannuation in 3 years from today. If the interest rate…

A: Please refer to the image below

Q: alculate the rent of an annuity at 4% compounded semiannually if payments are made every half year…

A: To calculate the rent of an annuity we will use the below formula   Rent of an annuity =…

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…