Part of the income that a machine generates isput into a sinking fund to replace the machine when itwears out. If $2,400 is deposited annually at 5% interest, how many years must the machine be kept beforea new machine costing $45,000 can be purchased?

Q: Year End-of-Year Payment 1 2 3 4 5 $1400 a. $7616 b. $7660 c. $7212 d. $5995 $1320 $1240 $1190 $1000…

A: The given series can be represented by the following cash flow diagram:Future value: Future value is…

Q: Tom makes annual payments of $12,204.21 per year on a loan. The loan was set at $42,000 at an…

A: Tom makes annual payments of $12,204.21 per year.The initial loan amount is $42,000.The interest…

Q: Property taxes in a particular district are 2% of thepurchase price of a home every year. If you…

A:

Q: company buys a machine for $17,000, which it agrees to pay for in six equal annual payments,…

A: Interest rate is the amount charged over and above the principal amount by the lender from the…

Q: Us pajam (e) $5,000 now for $225 at the end of each year. 3-9. A company can either buy certain land…

A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…

Q: borrowed $25,000 with an add-on rate, 6% for three years, and I have to make veekly payments. Jsing…

A: 8832 would be for 1 year If for one week $184 184*48=8832 For 3 years 8832*3=26496 $26496 is…

Q: You want to be able to withdraw $25,000 from your account each year for 20 years after you retire.…

A: Annuity is a series of cash flows (generally equal in nature) made or received at equal intervals,…

Q: You purchased a car using some cash and borrowing $19,000 (the present value) for 53 months at 12%…

A: Present value of the car=$19000Time=53 monthInterest rate=12% pa

Q: Sally purchases a perpetuity immediate with annual payments that pays $4000 toda and Payments…

A: Specifics of annual payment - Increases by 5% annually  Paid for 6 years    Let the payment in first…

Q: Enrico Suarez has decided to purchase a house instead of renting an apartment. He can a ord a…

A: The mortgage is an agreement between a lender and the party taking loan.

Q: QUESTION 2 1. You need $30,000 to buy a new Air-Con for your house in 4 years. What value you must…

A: The present value of a cash flow refers to its value at present based on its expected value in the…