A car is financed as follows: $2,000 as down-payment plus equal monthly payments at 8% annual interest rate compounded monthly for 3 years. Original price of the car was $12,000. It is expected that maintenance costs are going to be $700 in the first year increasing by $400 every year thereafter. Define the annual worth of this investment. (Note: Round your answer to 2 decimal places and don't use the $ sign in your answer)

A car is financed as follows: $2,000 as down-payment plus equal monthly payments at 8% annual interest rate compounded monthly for 3 years. Original price of the car was $12,000. It is expected that maintenance costs are going to be $700 in the first year increasing by $400 every year thereafter. Define the annual worth of this investment. (Note: Round your answer to 2 decimal places and don't use the $ sign in your answer)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Calculate the present value of an asset that pays $225 at the end of each year for 6 years and has a face value payment of $500
Annual maintenance for a machine are P 1,500.00 this year and are estimated to increase 10% each year every year. What is the present worth of themaintenance costs for six years if a.) i = 18%, b.) i = 10%, c.) i = 12%. (I want answer with formulas and process not excel)
A small business earns a baseline profit of $500 a year for 5 years. In addition, its profits increase by $500 each year after Year 1. In Years 4 and 5 the business has some unplanned gains and losses. After the cash flow schedule shown below and at the end of Year 5, the future value of the small business is $2200. Determine the unknown Year 4 cash flow, "CF4", if i = 10%. Year Cash Flow 0 0 1 $500 2 $1000 3 $1500 4 "CF4" 5 -$7500 Group of answer choices $5,291 $7110 $6700 $3196 $5822
J 7 What is the ordinary simple interest on 7000 for 8 mos and 15 days if the rate of interest is 15%.
6. A bank charges an interest rate of 7%. An engineer wants to loan an amount ofFhp 1,000,000 to start his construction business from January 06, 2022 to December 30,2022. Determine the difference of future worth of ordinary simple interest and exact simpleinterest.
You are considering buying a 10-year-old machine for $280, or a new fuel-efficient machine for$600. The new machine will save you $5 per month on your fuel bill, and you will be able to sellit for $300 in 10 years. The used machine will have no resale value at that time. Assume theinterest rate is 3% per year. According to the information given, which machine will you buy?
Compute the equivalent annual cost of the tube pipe whena tube indicator pipe was construct using line pipe thatcosts ₱145,000 with useful life of 18 years. If the money isworth 12% compounded annually.
Q#03 : Suppose you have cash flows as follows: End of Year Cash Flows ($) 1 8000 2 7000 3 6000 4 5000 Calculate present equivalent at i = 15% per year using gradient conversion factor.
a.) What is the approximate annualized yield on a 6-month Treasury bill with a face value of $1000 that is sold at $970 in the primary market?
C=400+0.75yd,I=200-100r,t=70+0.2y,g=100,x=10 derive is equation
I have purchased a machine worth P1,700,801.00. And it needs maintenance every 6 months starting from its purchased date for the first 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly? note:answer should be 400,000 and up
Pls. solve for the ordinary annuity of the following: Al Bundy says he paid $25,000 down on a new house and will pay $525 per month for 30 years. If interest is 7.8% compounded monthly, what was the selling price of the house? ($97929.78) At the time of retirement, a couple has $200,000 in an account that pays 8.4% compounded monthly. If they decide to withdraw equal monthly payments for 10 years, at the end of which time the account will have zero balance, how much should they withdraw each month? ($2469.04)