You are considering in investing one of the two options: Investment A requires a $80,000 upfront payment and generates $59,000 annually, Investment B requires a $68,000 upfront payment. How much should Investment B generate annually so that the total returns from Investment A and B become equal after 3 years?

how do you solve a depreciation problem?

A young family is looking to enter the property market. They plan to save for a 10% deposit and take out a loan (for the 90% balance). The deposit is for 10% of the property's value at the time the loan is taken out. The property is valued at $890,000 today, and is modelled to increase in value by 0.5% each month. The family can set aside $5,000 each month-end till the 10% deposit is made. The savings account pays interest at a rate of 0.5% each month. When the deposit is reached, a 30-year loan is taken out at an interest rate of 0.6% per month. a. Write the value, P(t) for the value of the property at the end of the tih month. b. Formulate a difference equation for the future value of the savings plan. c. Detail the finite difference solution for S(t), the future value of the savings plan. d. Solve for t, the time when the 10% deposit may be made and calculate the loan amount (to the nearest dollar). e. Detail the solution to calculate the monthly repayment amount (to the nearest…

Your uncle has $90,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in three years. After consulting with his financial advisor, he has been offered two types of investments, labeled as investments A and B. • Investment A is available every year and its maturity period is 1 year. Each dollar invested in A at the beginning of a year returns $1.12 (a profit of $0.12) at the end of the year, in time for immediate reinvestment. • Investment B is only available in the beginning of year 2 and its maturity period is 2 years. Each dollar invested in B at the beginning of year 2 returns $1.30 two years later. Formulate this investment planning problem as a linear programming model for your uncle to maximize the amount of money that can be accumulated at the end of three years. You may implement this problem into excel directly.