5- An equipment requires maintenance every year, at the end of each year, for 8 years. The 1st year maintenance cost is $1000.00, and every year it increases by $100.00. If the interest rate is 8%, what is the present worth of all the maintenance costs? a) $5747.00 b) $7527.60 c) $1780.60 d) $9600.00
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
5- An equipment requires maintenance every year, at the end of each year, for 8 years. The 1st year maintenance cost is $1000.00, and every year it increases by $100.00. If the interest rate is 8%, what is the present worth of all the maintenance costs?
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a) $5747.00
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b) $7527.60
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c) $1780.60
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d) $9600.00
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