08 (6 marks) Using the interest table and manual calculation, the maintenance cost of typing machine is $ 100 starting in year I and remains the same amount ($ 100) until year 5. Then it becomes $ 160 for the remaining 3 years (between year 6 and year 8). Knowing that the interest rate is 7% for the first 5 years and 10% for the remaining 3 years (between 6 and 8 years), the cash follow is shown below: P-? a) Find P:150 b) Find Po 2 4 5 $100 $100 $100 $100 $100 = 10%- $160 $160 $160 Year
08 (6 marks) Using the interest table and manual calculation, the maintenance cost of typing machine is $ 100 starting in year I and remains the same amount ($ 100) until year 5. Then it becomes $ 160 for the remaining 3 years (between year 6 and year 8). Knowing that the interest rate is 7% for the first 5 years and 10% for the remaining 3 years (between 6 and 8 years), the cash follow is shown below: P-? a) Find P:150 b) Find Po 2 4 5 $100 $100 $100 $100 $100 = 10%- $160 $160 $160 Year
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:08 (6 marks)
Using the interest table and manual calculation, the maintenance cost of typing machine is $ 100 starting in
year I and remains the same amount ($ 100) until year 5. Then it becomes $ 160 for the remaining 3 years
(between year 6 and year 8). Knowing that the interest rate is 7% for the first 5 years and 10% for the
remaining 3 years (between 6 and 8 years), the cash follow is shown below:
P-?
a) Find P:150
b) Find Po
2
4
5
$100 $100 $100 $100 $100
= 10%-
$160 $160 $160
Year
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