The annual cost of a certain service is $41,000 at EOY I which decreases by 7.5% per year for a period of 12 years. If the interest rate is 7.5% per year, what is the present equivalent of the annual cost at the beginning of year 1?

Q: If $300 is earned in three months on an investment of $12000, what is the annual rate of simple…

A: Correct Answer: The annual rate of simple interest is 10%

Q: What is the amount of interest earned on $2,000 for five years at 10% simple interest per year?

A: here we calculate the interest earned by simple interest so the calculation as follow-

Q: Mr. Smith has saved $1969 each year for 20 years. A year after the saving period ended, Mr. Smith…

A: Initial Savings Phase (20 Years)Mr. Smith saves $1969 each year for 20 years. The future value ( FV…

Q: You are planning to withdraw $100 in Year 1, $150 in Year 3, and $200 in Year 5. At a 5% interest…

A: In economics, the present value(PV) is the value of an anticipated stream of income determined as of…

Q: Suppose that $5000 is deposited in a saving account at the rate of 6% per year. Find the total…

A: Since we only answer up to 3 sub-parts, we will answer the first 3. Please resubmit the question…

Q: Calculate the present worth of 20.00 uniform payments of $8,400 that begin 1 year from now at an…

A: The formula of present worth of a uniform series is: P = A*((1+i)^n-1)/(i*(1+i)^n) Here A is the…

Q: What is the present value of $100 realized two years from now if the interest rate is 10%?

A: Present worth is the concept that describes an amount of money today is value greater than that same…

Q: Your company wants to set aside a fixed amount every year to a sinking fundto replace a piece of…

A: The details given indicate that the firm needs to make a future sum of $375,000 at the end of the…

Q: Tuition at a local college is currently $3,600 per year.  If tuition rates  are expected to increase…

A: The present value is the current value of future sum of the money.  The future value is the…

Q: What payment X 10 years from now is equivalent to a payment of P 1,000 6 years from now, if interest…

A: Given information, Present value: P1,000 (6 years from now) Interest rate: 15% Time period: 4 years…

Q: Find the 7 uniform annual deposits that can provide a single withdrawal of $38,500, at 2 years after…

A:

Q: What is the effective annual interest rate if the nominal interest rate is 6%, compounded monthly?

A: To calculate the effective annual interest rate if the nominal interest rate is given as 6%…