#34  Equivalent Annual Annuity Econo- Cool Air conditioners cost $300 to purchase, result in electricity bills of $1500 per year, and last for 5 years. Luxury Air model cost $500, results on electricity bills of $100 per year and last 8 years. The discount rate is 21%. What is the equivalent annual cost of the Econo- Cool Model? What is the equivalent annual cost of the Luxury Air Moel? Which model is more cost efficient?

Q: Compute the amount of money to be set aside today to ensure a future value of $4,400 in one year if…

A: Present Value of Money to be set aside to receive amount after a specified period (say t) and at a…

Q: 1.If you put up $40,000 today in exchange for a 7.65 per cent, 20-year annuity, what will the annual…

A: Because you have posted multiple questions, we will answer the first question only.For the remaining…

Q: What is the present value of receiving $1,950 a year for 30 years if you expect a rate of return of…

A: Present Value = Future Value / (1+rate)^n

Q: Q Search this Ey- Time value of money c. Find the PV of $1,000 due in 6 years if the discount rate…

A: Since multiple questions are involved , we will answer 1st sub 3 questions as per prescribed policy.…

Q: Econo-Cool air conditioners cost $400 to purchase, result in electricity bills of $169 per year, and…

A: PV is the present worth of cash flows that are expected to occur in the future.

Q: An investor is considering an annuity that pays $40,000 per year for four years.  1. Assuming the…

A: (answer of first 3 parts, please specify if any other part is required) We can compute the present…

Q: CoPo is contemplating the purchase of a new machine. Machine 210000 cost Down 50000 рayment Loan…

A: Ms-Excel --> Formulas --> Financials --> PMT Therefore, the loan payment on plan A is…

Q: d. A security has a cost of $1,000 and will return $4,000 after 6 years. What rate of return does…

A: d. Initial cost = $1,000 Amount returned = $4,000 Period = 6 years Rate of return = ?   Rate of…

Q: Angelina Jolie wants to buy a new farm equipment costing $300,000 making a down payment of $50,000.…

A: Loan amount (L) = $300000 - $50000 = $250000 r = 20% per annum = 1.667% per month n = 4 years = 48…

Q: How much is the effective cost if you need to borrow $250,000 for one year with 12% single payment…

A: As per our guidelines, we are supposed to answer only 1 question ( if there are multiple questions…

Q: How to compute Equivalent Annual Annuity on financial calculator: The old combine is good for 2…

A: Equivalent annual annuity (EAA) is an approach which is used to select best alternative between two…

Q: QUESTION 2 A machine will have a cost of $35 thousand, 5 years from now. Find the present worth (PW)…

A: Concept. 1. Pw = Fv  ÷ (1+r)n Where Pw = present worth              Fv = future worth              r…

Q: 4. The Tower family wants to make a home improvement that is expected to cost RM60,000. They want to…

A: given information   cost = RM60,000 interest rate = 12% no of years  =  10 years

Q: 10. Determine the present value now of an investment of OMR3,000 made one year from now and an…

A: The money's worth varies with time. Therefore, we consider the value of the money with time. Today's…

Q: Substitute the values into the formula and compute how much money will be available after 15…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: 3. An investment pays $7,000 per year forever, with the first payment occurring 15 years from now.…

A: Since you have posted the specific question (3), we will solve the same question for you. The…

Q: 6. A company is buying a piece of manufacturing equipment now for $45,000. They expect to have to…

A: Cost of equipment now (PV) = $45000 Inflation rate (i) = 3.8% Period (t) = 10 Years

Q: #34  Equivalent Annual Annuity Econo- Cool Air conditioners cost $300 to purchase, result in…

A: Note: The annual cost of Econo provided by you is $1500 , which should be $150. I have used $1500…

Q: 10) Which of the following two options for purchasing an equipment has a lower net present cost?…

A: Net present cost of the projects helps in ascertainment of present values of future cash flows over…

Q: You find a great investment opportunity paying 9.25% compounded semi-annually so you immediately…

A: Future value is the value of present cashflow at future date compounded at specified rate. formula:…

Q: You want to buy a mobile phone today. You can either (A) pay 9.60 a month for 3 years, with the…

A:

Q: You are comparing two annuities with equal present values. The applicable discount rate is 8.75…

A: The question is related to the Present Value of Annuity due. It is calculated with the help of…

Q: 5) A device is purchased for $10,000. It yields a $2,000 yearly net profit for first 4 years and…

A: 2000 for 4 years  1000 for 4 years  Required rate =10%

Q: If inflation has been running at 2.85% per year and a new car costs $31,400 today, what would it…

A: Rate of inflation per year is 2.85% Cost of Car today "Future Value" is $31,400 Time period is 3…

Q: ***Internal rate of Return Question*** vant to buy a solar system to your store. the monthly energy…

A: internal rate of return is rate at which present value of cash flow is initial cost of project.

Q: Suppose you have just started 21st year of your life, you plan to retire at the end of age 65, and…

A: Here, Earning Per year is $50,000 Savings is 10% of Income Working Year is 45 years Retirement years…

Q: 8. If you buy a factory for $250,000 and the terms are 20 percent down, the balance to be paid off…

A: Computation:

Q: Question 2B You need to save aside $320,000 for your retirement plan 10 years from now. You have a…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Your landscaping company can lease a truck for $8,000 a year (paid at year-end) for 6 years. It can…

A: a. for leasing, annual annuity (A) = $8000 r=7% n=6 years present value of…

Q: Chapter 8 Consumer Purchasing Strategies and Legal Protection Financial Planning Question 1

A: Payment per year(PMT) =$180 Interest rate(r) is 5% Time period(t) is 10 Years. Future value of…

Q: With i = 8% per year, a car battery that costs $38.00 today would be economically equivalent to how…

A: This problem can be solved using the concept and formula of 'time value of money'.

Q: You believe you will spend $40,000 per year for 20 years once you retire in 40 years. If the…

A: Using excel PV and PMT function

Q: A. Find the amount and present value of an annuity of 540 payable every end of the month at 7%…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Future value. Upstate University charges $16.000 a year in graduate tuition. Tuition rates are…

A: Given:Upstate university charges $16000 a year in graduate tuition Growth rate=3.75% each…

Q: You would like to have enough money saved to receive a growing annuity for 25 years, growing at a…

A: Present value is the value of presents value of the investment of future value.

Q: The average cost of a certain model car was $22,000 ten years ago. This year the average cost is…

A: Expected Return: The expected return is the minimum required rate of return which an investor…

Q: It is given that you need to save aside $320,000 for your retirement plan 10 years from now. You…

A: The future value is the future worth of the amount that will be paid o received in the future.

Q: er year, how much could you afford to spend for a higher quality heat exchanger so that these annual…

A: Present value of the the future cost considering the inflation and cost of capital would give the…

Q: ) Suppose you will need $12,000 in 3 years. How much must you invest per month in order to have…

A: The given problem can be solved using PMT function in excel. PMT function computes savings/…