Manufacturers make backup batteries for computer systems available to Batteries+ dealers through privately owned distributorships. In general, batteries are stored throughout the year, and a 5% cost increase is added each year to cover the inventory carrying charge for the dis- tributorship owner. Assume you own the City Center Batteries+ outlet. Make the calculations necessary to show which of the following statements are true and which are false about battery costs. (a) The amount of $98 now is equivalent to a cost of $105.60 one year from now. (b) A truck battery cost of $200 one year ago is equivalent to $205 now. (c) A $38 cost now is equivalent to $39.90 one year from now. (d) A $3000 cost now is equivalent to $2887.14 one year earlier. (e) The carrying charge accumulated in 1 year on an investment of $20,000 worth of batteries is $1000.
Manufacturers make backup batteries for computer systems available to Batteries+ dealers through privately owned distributorships. In general, batteries are stored throughout the year, and a 5% cost increase is added each year to cover the inventory carrying charge for the dis- tributorship owner. Assume you own the City Center Batteries+ outlet. Make the calculations necessary to show which of the following statements are true and which are false about battery costs. (a) The amount of $98 now is equivalent to a cost of $105.60 one year from now. (b) A truck battery cost of $200 one year ago is equivalent to $205 now. (c) A $38 cost now is equivalent to $39.90 one year from now. (d) A $3000 cost now is equivalent to $2887.14 one year earlier. (e) The carrying charge accumulated in 1 year on an investment of $20,000 worth of batteries is $1000.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:Manufacturers make backup batteries for computer systems available to Batteries+ dealers
through privately owned distributorships. In general, batteries are stored throughout the year,
and a 5% cost increase is added each year to cover the inventory carrying charge for the dis-
tributorship owner. Assume you own the City Center Batteries+ outlet. Make the calculations
necessary to show which of the following statements are true and which are false about battery
costs.
(a) The amount of S$98 now is equivalent to a cost of $105.60 one year from now.
(b) A truck battery cost of $200 one year ago is equivalent to $205 now.
(c) A $38 cost now is equivalent to $39.90 one year from now.
(d) A $3000 cost now is equivalent to $2887.14 one year earlier.
(e) The carrying charge accumulated in 1 year on an investment of $20,000 worth of
batteries is $1000.
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