The first question: An investor saves annually an amount of money amounting to A with an annual interest of 8%, and after the expiry of 10 years, the investor decided to withdraw the amount to buy a machine whose useful life is 12 years and with a book value at the end of the fourth year of $ 40,000 and its recoverable value at the end of the useful life of $ 2000 Find the value of A if The depreciation was calculated using the sum of the numbers of years
The first question: An investor saves annually an amount of money amounting to A with an annual interest of 8%, and after the expiry of 10 years, the investor decided to withdraw the amount to buy a machine whose useful life is 12 years and with a book value at the end of the fourth year of $ 40,000 and its recoverable value at the end of the useful life of $ 2000 Find the value of A if The depreciation was calculated using the sum of the numbers of years
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:The first question: An investor
saves annually an amount of
money amounting to A with an
annual interest of 8%, and after
the expiry of 10 years, the investor
decided to withdraw the amount
to buy a machine whose useful
life is 12 years and with a book
value at the end of the fourth year
of $ 40,000 and its recoverable
value at the end of the useful life
of $ 2000 Find the value of A if
The depreciation was calculated
using the sum of the numbers of
years
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