7. A business firm contemplating the installation of labor saving machinery has a choice between two different models. Machine A will cost P36,500, while machine B will cost P36,300. The repairs required for each machine are as follows: Machine A: P 1,500 at the end of 5th year P 2,000 at the end of 10th year P 3,800 at the end of 9th year Machine B: The machines are alike in all other aspects. If this firm is earning 7% return on its capital, which machine should be purchase? 8. What will be the future worth of money after 12 months, if the sum of $25,000 is invested today at simple interest rate of 1% per year?
7. A business firm contemplating the installation of labor saving machinery has a choice between two different models. Machine A will cost P36,500, while machine B will cost P36,300. The repairs required for each machine are as follows: Machine A: P 1,500 at the end of 5th year P 2,000 at the end of 10th year P 3,800 at the end of 9th year Machine B: The machines are alike in all other aspects. If this firm is earning 7% return on its capital, which machine should be purchase? 8. What will be the future worth of money after 12 months, if the sum of $25,000 is invested today at simple interest rate of 1% per year?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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Topic "Simple & Compound Interest". Write the solution and box the final answer.
Transcribed Image Text:7. A business firm contemplating the installation of labor saving
machinery has a choice between two different models. Machine A will
cost P36,500, while machine B will cost P36,300. The repairs required
for each machine are as follows:
Machine A:
P 1,500 at the end of 5th year
P 2,000 at the end of 10th year
P 3,800 at the end of 9th year
Machine B:
The machines are alike in all other aspects. If this firm is earning 7%
return on its capital, which machine should be purchase?
8. What will be the future worth of money after 12 months, if the sum of
$25,000 is invested today at simple interest rate of 1% per year?
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