A company plans to buy new equipment in 6 years. They will start by saving $3,091 at the end of this year, but increase it by 14.9% each year until they buy the equipment. How much will they have to spend If they receive 17.8% interest per year?

Q: An engineering company currently pays $18,175 a quarter for insurance. They pay on the 1st day of…

A: The quarterly interest rate will be the rate with equates the present value of the quarterly…

Q: The annual income from an apartment house is $33,600. The annual expense is estimated to be $8000.…

A: Return on investment = 6% = 0.06 Initial investment = $349,000 Annual net income = Annual income -…

Q: Should you buy an asset that will generate income of $1,000 per year for 10 years? The price of the…

A: YEAR CASH FLOW      0 -7500 1 1000 2 1000 3 1000 4 1000 5 1000 6 1000 7 1000 8…

Q: A power plant is planning an expansion worth $4 million now. What uniform revenue every six months…

A: Present Value of Ordinary Annuity refers to a concept which determines the value of cash flows at…

Q: If you put $2,500 in a savings account at the end of each year for 10 years and then allow the…

A: Yearly payment(PMT) is $2,500 Time period(initial) = 10 years Rate 12% per annum Futute value of…

Q: You have $10,000 to invest for five years. - How much additional interest will you earn if the…

A: Given Information : Amount invested - $10,000 (Present value) Rate of interest (r) - 5%/4.5% Time…

Q: One building was priced at $ 125,000 . If you advance $ 25,000 and every month after that If $ 1,000…

A:

Q: An engineering technology group just purchased new CAD software for $5000 now and annual payments of…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: It is likely that airplane tickets will increase 5% in each of the next 5 years. The cost of a plane…

A: Data given: Cost of a plane ticket at the end of the first year = ₱10720. Increase in airplane…

Q: You deposit $1,800 into a 9% account today. At the end of two years, you will deposit another…

A: Deposit now = $ 1800 Interest rate = 9% Deposit 2 years from now = $ 3000 Purchase 5 years from now…

Q: A company wishes to make 5 equal annual investments so that on the date of the last investment, it…

A: Equal investment = 5 Cost of machine = $50,000 Interest rate = 4%

Q: A company plans to buy new equipment in 25 years. They will start by saving $1,370 at the end of…

A: Saving at the end of year = $ 1370 Annual growth rate = 3.5% Annual interest rate = 15.3% Period =…

Q: A company is expected to result 2900$ savings first year then increase by 200$ annually, if the rate…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You can purchase an equipment for $4,000. The equipment will provide benefits worth $900 a year. The…

A: We'll compare the price per year with the present value of cash inflows in order to arrive at a…

Q: Your company has a $100,000 loan for a new security system it just bought. The annual payment is…

A: To find the number of years in which the loan would be paid off. One can use NPER function in excel.…

Q: Annual maintenance cost for a machine is P1500 this year and are estimated to increase 10% each…

A:

Q: will your hotel have at the end of the 10th year ($)?

A: Future value refers to the amount of a current cash flow at some future date based on the given…

Q: Equipment that costs $15,000 and generates a $5,000 annual return would appear to "pay back" on the…

A: Given: Investment =$15000Annual return =$5000Inflation rate =30%

Q: How much must be deposited

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: how much will they have in three years, if interest is 2.5% compound monthly?

A: Future Value = PV x (1 + r)^n Here, PV = Present Value or Amount Invested i.e. $16000 r = Periodic…

Q: Your company plans to invest $20,000 at the end of each year or years 1 through 5, The company will…

A: Present Value: It represents the present worth of the future amount and is computed by multiplying…

Q: You have decided to set aside a fixed amount every quarter in order to have $12,000 available for a…

A: The amount to be deposited every quarter can be calculated with the help of future value of annuity…

Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?

A: Future value is the value of assets at a future date given a growth rate. This is used for financial…

Q: It is estimated that the maintenance cost on a new car will be $350 the first year. Each subsequent…

A: Amount need to set aside to pay all future maintenance cost is the present value of future cash…

Q: Annual maintenance costs for a machine are ₱25,000 for six years. Interest rate is 6%. If…

A: Present value (PV), if the stated rates of return are provided, is the current value of a future…

Q: An item will need replacing in 6 years from now at a cost of ₱128,000.00. How much should the owner…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: A condominium unit can be bought at a down payment of ₱150,000 and a monthly payment of ₱ 21,170 for…

A: In this problem we have to calculate the present value of monthly payment and add to that down…

Q: A new roof will cost $12000 . It will be invested in 19 years . If the interest rate is 7% per year…

A: Amount to be invested each year = A r = 7% Accumulated amount = $12000 n = 19 years

Q: If a company will pay $75,000 for a truck that will increase deliveries to be made which will give…

A: The cost of cash = $75,000 Revenue per year = $10,000 Time period = 10 years  Interest Rate = 4%

Q: What is the rate of return on an investment of $10,606 if the company will receive $2,000 each year…

A: The rate of return on an investment is the ratio of profits earned on an investment made by the…

Q: A client wants to save $ 20,000 for a year starting from January at an initial effective rate of…

A: Answer with all calculations are as follows

Q: If a company invests $10,000 at 7% simple interest for 20 years, how much will it have at the end of…

A: Formula: Future value = Amount + Interest Future value = $10,000 + ($10,000*7%*20) Future value…

Q: The cost of utilities (e.g. water and electricity) of a company is expected to increase at a rate of…

A: Introduction Equivalent annual cost  The equivalent annual cost is the overall amount of…

Q: You want to save for a down payment on a new home in the future. You can invest $225 at the end of…

A: We need to use future value of annuity formula to calculate amount of saving at the end of 5 year…

Q: How many years will it take Rexchem, Inc. to accumulate $400,000 for a chemical feeder if the…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You have decided to set aside a fixed amount every quarter in order to have $15,000 available for a…

A: Future Value of investment = $15,000 Time period = 3 years Interest Rate = 5%  The investment is…

Q: If you invest $2,000 per year for 9 years and earn a 5% return on your investment during that…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Your start-up company's net profit next year will be $50,000, and you then expect that to increase…

A: Equivalent annual worth provides a basis of measurement and comparison by converting the cash flows…

Q: A business is increasing by 10% for 8 years. If the sales in year 1 is $ 22,000, what is the present…

A: Present value = sum of present value of all sales figures for years 1 to 8. This can be treated as a…

Q: You expect that you will need to replace your furnace in 4 years at a cost of $16,716. How much must…

A: Given months = 30 cost = 16716 APR = 2.91%

Q: The annual income from a rented house is $26,400. The annual expenses are $7200. If the house can be…

A: Present Value: It refers to the amount of money received today is having more worth than the same…

Q: A. A person wants to generate fourintallments of $1,000 in the following four years. How much money…

A: Discounting the future cashflows provides the present value.

Q: all employee contributions with employer contributions on a two-to-one basis. That is if an employee…

A: Given as, Monthly expense, after 25 yrs – 9000 Yearly withdrawal after 26 yrs – 35000 Effective…

Q: Norwood Investments is putting out a new product. The product will pay out $25,000 in the first…

A: Value of perpetuity is present value of cash flow for perpetuity.

Q: a condominium unit is available at 29,000 monthly payable in 20 years. The first payment is due in 2…

A: The cash value for the condominium is the present value of $29,000 annuity which will be discounted…

Q: Wildhorse Co. is considering investing in an annuity contract that will return $28,140 annually at…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…