A gold mine is expected to yield an annual income of $90000 for the next 24 years, after which it will be sold for $6300. An investor wants an annual return on his investment of 12%. If he can establish a sinking fund earning an annual interest rate of 6%, how much should he pay for the mine?

A gold mine is expected to yield an annual income of $90000 for the next 24 years, after which it will be sold for $6300. An investor wants an annual return on his investment of 12%. If he can establish a sinking fund earning an annual interest rate of 6%, how much should he pay for the mine?

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Similar questions

Karina has two investment options for $20,000 she is saving for her future college expenses. One account pays 2.3% interest compounded weekly. The second account pays 5.7% compounded quarterly. Which account will have the larger balance after 3 years?
I have $30,000 to put into an account. Explain which account would be better for me to choose. Account A: pays 2% interest, compounded monthly, for 10 years. OR Account B: pays 3% interest, compounded quarterly, for 8 years.
Suppose you owe $18,000 on a credit card that carries an APR of 24%. Because the balance is so high, you choose to stop charging and pay off the card. You can afford to make only the minimum monthly payment, which is 5% of the balance. Then your balance after t months is given by B = 18,000(1.02 ✕ 0.95)t dollars. How many payments will you have to make to get the balance below $100?
You deposit $850 in an account paying an annual simple interest rate of 7.7%. Find the future value of the investment (in dollars) after 1 year.
Mateo loves lattes and buys one almost every day. This amounts to about $121 per month. If Mateo invested this amount ($121) into an account earning 5% at the end of each month, how much will Mateo have 4 years from now? Mateo will have $ 44
A store shows a net profit of $65,250 for the year. If the store profit increases by 3.75% per year for the next 15 years what will the net profit be at that point?
Kicks saviras acount has a balance If he does not make a withdrOwa.l or deposit how much money will be in ricks account If it paus an anual inferest rate of 6 for 8 year compounded aquarterly? of 5000 $1.
How much interest will Angel pay if she borrowed P120 000 payable in 8 months at 2.5%? A P2 500 B P1 500 P2 800 P2 000
Mai has contributed $175 at the end of each month into her company's employee retirement account for the past 10 years. Her employer has matched her contribution each month. If the account has earned interest at the rate of 3%/year compounded monthly over the 10-year period, determine how much Mai now has in her retirement account. (Round nearest cent.)$ Peggy made a down payment of $400 toward the purchase of new furniture. To pay the balance of the purchase price, she has secured a loan from her bank at 5%/year compounded monthly. Under the terms of her finance agreement, she is required to make payments of $71.32 at the end of each month for 36 months. What was the purchase price of the furniture? (Round nearest cent.)$ The Turners have purchased a house for $140,000. They made an initial down payment of $20,000 and secured a mortgage with interest charged at the rate of 2.5%/year on the unpaid balance. (Interest computations are made at the end of each month.) Assume that the…