on to view the interest factors for discrete compounding when i=7% per year. hent rate should be $ per mile. (Round to the nearest cent.) More Info Single Payment Compound Present Amount Worth Factor Factor (F/P, i, N) (P/F, I, N) 1.0700 0.9346 1.1449 0.8734 1.2250 0.8163 1.3108 0.7829 1.4026 0.7130 1.5007 0.6683 0.6227 1.6058 1.7182 0.5820 1.8385 0.5439 1.9672 0.5083 SAWNIN 1 2 3 4 67899 10 Compound Amount Factor (F/A, i, N) 1.0000 2.0700 3.2149 4.4399 5.7507 7.1533 8.6540 10.2598 11.9780 13.8164 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, i, N) 1.0000 0.9348 0.4831 1.8080 0.3111 2.6243 0.2252 3.3872 0.1739 4.1002 0.1398 4.7885 0.1156 5.3893 0.0975 5.9713 0.0835 6.5152 0.0724 7.0238 (...) Capital Recovery Factor (A/P, i, N) 1.0700 0.5531 0.3811 0.2952 0.2439 0.2008 0.1856 0.1675 0.1535 0.1424 X More Info Depreciation Scheduled maintenance Insurance Registration and taxes Total ownership cost Nonscheduled repairs Replacement tires Accessories Gasoline and taxes Oil Parking and tolls Total operating costs Total of all costs Expected miles driven First Year Second Year $2,879 $1,776 100 153 635 635 78 57 $3,692 $2,621 35 35 15 688 80 135 $988 $4,680 14,500 85 30 13 650 100 125 $1,003 $3,624 13,000
on to view the interest factors for discrete compounding when i=7% per year. hent rate should be $ per mile. (Round to the nearest cent.) More Info Single Payment Compound Present Amount Worth Factor Factor (F/P, i, N) (P/F, I, N) 1.0700 0.9346 1.1449 0.8734 1.2250 0.8163 1.3108 0.7829 1.4026 0.7130 1.5007 0.6683 0.6227 1.6058 1.7182 0.5820 1.8385 0.5439 1.9672 0.5083 SAWNIN 1 2 3 4 67899 10 Compound Amount Factor (F/A, i, N) 1.0000 2.0700 3.2149 4.4399 5.7507 7.1533 8.6540 10.2598 11.9780 13.8164 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, i, N) 1.0000 0.9348 0.4831 1.8080 0.3111 2.6243 0.2252 3.3872 0.1739 4.1002 0.1398 4.7885 0.1156 5.3893 0.0975 5.9713 0.0835 6.5152 0.0724 7.0238 (...) Capital Recovery Factor (A/P, i, N) 1.0700 0.5531 0.3811 0.2952 0.2439 0.2008 0.1856 0.1675 0.1535 0.1424 X More Info Depreciation Scheduled maintenance Insurance Registration and taxes Total ownership cost Nonscheduled repairs Replacement tires Accessories Gasoline and taxes Oil Parking and tolls Total operating costs Total of all costs Expected miles driven First Year Second Year $2,879 $1,776 100 153 635 635 78 57 $3,692 $2,621 35 35 15 688 80 135 $988 $4,680 14,500 85 30 13 650 100 125 $1,003 $3,624 13,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Here is the transcription and detailed explanation of the content:
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**Title: Business Vehicle Expense Analysis for Jennifer Ozman**
Jennifer Ozman is a sales engineer at Montana Chemical Engineering Company. Jennifer owns two vehicles, and one of them is entirely dedicated to business use. Her business car is a small, used pickup truck, which she purchased with $11,000 of personal savings. On the basis of her own records and with data compiled by the U.S. Department of Transportation, Jennifer has estimated the costs of owning and operating her business vehicle for the first three years as given in the table below. If her interest rate is 7%, what should be Jennifer's reimbursement rate per mile so that she can break even?
- Click the icon to view the costs of owning and operating the business vehicle.
- Click the icon to view the interest factors for discrete compounding when \( i = 7\% \) per year.
**Reimbursement Rate Calculation:**
The reimbursement rate should be \$ [ ] per mile. (Round to the nearest cent.)
**More Info:**
**Interest Factors Table:**
| \( N \) | Compound Amount Factor (\( F/P, i, N \)) | Present Worth Factor (\( P/F, i, N \)) | Compound Amount Factor (\( F/A, i, N \)) | Sinking Fund Factor (\( A/F, i, N \)) | Present Worth Factor (\( P/A, i, N \)) | Capital Recovery Factor (\( A/P, i, N \)) |
|--------|----------------------------------------|----------------------------------------|----------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
| 1 | 1.0700 | 0.9346 | 1.0000 | 0.0700 | 0.9346 | 1.0700 |
| 2 | 1.1449 | 0.8734 | 2.0700 | 0.0338 | 1.8080 | 0.5378 |
| 3 | 1.2250 | 0.8163 | 3.2140 | 0.0210 | 2.6243 | 0.3811 |
| 4 | 1.3108 | 0.7629 | 4.4380](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11a7555a-db8a-4c02-9bb7-d5aacd6d29ec%2F40afd6bc-7b9a-4f26-afcd-41d043acd585%2F7keppn9_processed.png&w=3840&q=75)
Transcribed Image Text:Here is the transcription and detailed explanation of the content:
---
**Title: Business Vehicle Expense Analysis for Jennifer Ozman**
Jennifer Ozman is a sales engineer at Montana Chemical Engineering Company. Jennifer owns two vehicles, and one of them is entirely dedicated to business use. Her business car is a small, used pickup truck, which she purchased with $11,000 of personal savings. On the basis of her own records and with data compiled by the U.S. Department of Transportation, Jennifer has estimated the costs of owning and operating her business vehicle for the first three years as given in the table below. If her interest rate is 7%, what should be Jennifer's reimbursement rate per mile so that she can break even?
- Click the icon to view the costs of owning and operating the business vehicle.
- Click the icon to view the interest factors for discrete compounding when \( i = 7\% \) per year.
**Reimbursement Rate Calculation:**
The reimbursement rate should be \$ [ ] per mile. (Round to the nearest cent.)
**More Info:**
**Interest Factors Table:**
| \( N \) | Compound Amount Factor (\( F/P, i, N \)) | Present Worth Factor (\( P/F, i, N \)) | Compound Amount Factor (\( F/A, i, N \)) | Sinking Fund Factor (\( A/F, i, N \)) | Present Worth Factor (\( P/A, i, N \)) | Capital Recovery Factor (\( A/P, i, N \)) |
|--------|----------------------------------------|----------------------------------------|----------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------|
| 1 | 1.0700 | 0.9346 | 1.0000 | 0.0700 | 0.9346 | 1.0700 |
| 2 | 1.1449 | 0.8734 | 2.0700 | 0.0338 | 1.8080 | 0.5378 |
| 3 | 1.2250 | 0.8163 | 3.2140 | 0.0210 | 2.6243 | 0.3811 |
| 4 | 1.3108 | 0.7629 | 4.4380
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