# Solving 6 problems

1.    AT AN INTEREST RATE OF 6%, HOW MUCH WILL BE ACCUMULATED IN EIGHT YEARS IF FIVE PAYMENTS OF \$10,000 EACH ARE DEPOSITED EVERY OTHER YEAR WITH THE FIRST DEPOSIT

2.    JOE THE PLUMBER INVESTS \$10,000 THE FIRST YEAR AND INCREASES THE INVESTMENT BY \$5000 IN EACH OF THE FOLLOWING YEARS.  IF THE INTEREST RATE IS 4.5%/YEAR:
2A. WHAT IS THE PAYMENT PERIOD?
2B. WHAT IS THE INVESTMENT WORTH AT THE END OF 10 YEARS?

3.     A INVESTIMENT OF \$1000 NOW AT A SIMPLE INTEREST RATE OF 4% FOR 4 YEARS IS EQUIVALENT TO HOW MUCH MONEY INVESTED NOW AT A COMPOUND RATE OF 4%/YEAR.

4.    A NEW MACHINE WILL COST \$17,000 AND WILL HAVE A RESALE VALUE OF \$14,000 AFTER FIVE YEARS.  SPECIAL TOOLING WILL COST \$5,000 THE START OPERATING THE MACHINE.

THE TOOLING WILL HAVE A RESALE VALUE OF \$2,500 AFTER FIVE YEARS. MAINTENANCE WILL BE \$2,000 PER YEAR. THE ANNUAL INTEREST RATE IS 6%.
4A.  CONSTRUCT THE COMPLETE CASH FLOW DIAGRAM.
4B.  WHAT WILL BE THE AVERAGE ANNUAL COST OF OWNERSHIP DURING THE NEXT FIVE
YEARS?

5.    EQUIPMENT THAT IS PURCHASED FOR \$12,000 NOW IS EXPECTED TO BE SOLD AFTER TEN YEARS FOR \$2,000. THE ESTIMATED MAINTENANCE IS \$1,000 FOR THE FIRST YEAR, BUT IS

EXPECTED TO INCREASE \$200 EACH YEAR THEREAFTER. THE ANNUAL INTEREST RATE IS 10%. WHAT IS:
6A. THE PRESENT WORTH OF THE EQUIPMENT?
6B. THE ANNUAL COST OF THE OPERATION?

Get a 10 % discount on an order above \$ 100
Use the following coupon code :
ULTIMATE