Please answer fast please arjent help Q9.A major repair on the suspension system of a 5-year-old car cost $2000 because thewarranty expired after 3 years of ownership. The cost of periodic maintenance has been$800 every 2 years. If the owner donates the car to charity after 8 years of ownership,what is the equivalent annual cost of the repair and maintenance in the 8-year period ofownership? Use an interest rate of 8% per year, and assume that the owner paid the$800 maintenance cost immediately before donating the car in year 8.Answ. $-621 per year

First we compute Calculate the present worth of the repair and maintenance. Second we compute…

warranty expired after 3 years of ownership. The cost of periodic mainten $800 every 2 years. If the owner donates the car to charity after 8 years of what is the equivalent annual cost of the repair and maintenance in the 8- ownership? Use an interest rate of 8% per year, and assume that the own. $800 maintenance cost immediately before donating the car in year 8.

warranty expired after 3 years of ownership. The cost of periodic mainten $800 every 2 years. If the owner donates the car to charity after 8 years of what is the equivalent annual cost of the repair and maintenance in the 8- ownership? Use an interest rate of 8% per year, and assume that the own. $800 maintenance cost immediately before donating the car in year 8.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Mr. Juan dela Cruz borrowed P 1,000 and was able to sign a promissory note that he would pay P 2,032.79 after 4 years. What is the value of the present worth factor?
Compute the present worth (P) for the cash flows with the different periodicinterest rates specified. The cash flows occur at the end of each year over sixyears.(a) P = $2,140(b) p = $2,154(c) P = $2,234( d) p = $2,249
If $3000 invsted in a compound interest account for 4 years, amounts to $3612, what is the annual interest rate paid by the account? Answer =...%
A man borrowed P 80,000 and promised to pay the amount after 8 months with 12% interest. What is the future amount(P)?
(c) If $5 is invested at 45% simple interest, its value after 13.1 years is
2.38 A concept car that will get 100 miles per gallon and carry 4 persons would have a carbon-fiber and aluminum composite frame with a 900 cc three- cylinder turbodiesel/electric hybrid power plant. The extra cost of these technologies is estimated to be $11,000. If gasoline savings over a comparable conventional car would be $900 in year 1, increas- ing by 10% each year, what is the present worth of the savings over a 10-year period at an interest rate of 8% per year?
P4000 is borrowed for 75 days at 16% per annum ordinary simple interest. How much will be due at the end of 75 days?
If I want to invest my money, how long will it take (in months) $6000 to earn $120 interest (simple) at 6%?
Leon and Heidi decided to invest $2500annually for only the first nine years of their marriage. The first payment was made at age 25.If the annual interest rate is12%,how much accumulated interest and principal will they have at age65? Please don't handwriting solution
A loan for P 60,000.00 is to be paid in 4 years at the amount of P 75,000.00 . What is the effective rate of money?
A man wishes to withdraw an amount of P5,000 per month from the bank for 3 years. If interest is 1% monthly, what amount should he deposit now in the bank?
What will be the amount accumulated by each of these present investments? (a) $5,635 in 10 years at 5% compounded semiannually.