A large automobile manufacturer has developed a continuous variable transmission​ (CVT) that provides smooth shifting and enhances fuel efficiency by 3 mpg of gasoline. The extra cost of a CVT is ​$700 on the sticker price of a new car. For a particular model averaging 25 miles per gallon with the​ CVT, what is the cost of gasoline​ (dollars per​ gallon) that makes this option affordable when the​ buyer's interest rate is 8​% per​ year? The car will be driven 90,000 miles uniformly over an​ eight-year period.

Q: For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth…

A: The equivalent annual worth is a concept used in economics and finance to calculate the value of a…

Q: a perpetuity has a price of $750 and an annual interest payment of $35,

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Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…

A: Given:PV=$10,000r=7%=7100=0.07t (number of years)=9n (number of compounding)=365 (daily)

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A: Given, Future Value= $455000            Rate of interest= 7%            Time= 6 years

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Q: A large automobile manufacturer has developed a continuous variable transmission (CVT) that provides…

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Q: You set up a trust fund for your 8-year-old child. which is to pay out $10,000 when she turns 18.…

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Q: What is the present equivalent value

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A: To calculate the future equivalent value of for a series compound amount is given by, F=A(1+r)n-1r

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A: NPV is a capital budgeting technique used to find the acceptability and profitability of a project.…

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