What is the equivalent annual cost in years 1 through 10 of a contract that has a first cost of $73,000 in year 0 and annual costs of $19,000 in years 3 through 10? Use an interest rate of 14% per year.

Q: How much more is a perpetuity of $2,000 worth than an annuity of the same amount for 10 years?…

A: Formula using here,  PV of perpetuity =Amountinterest rate =20004%=$50,000

Q: A  company has an investment project project that would cost $10million today and yield a payoff of…

A: To find the exact cutoff of the interest rate between profitability and non-profitability.we are…

Q: If you have been hired at an annual salary of $23000 and expect to recieve annual increases of 5%.…

A: Solution

Q: What would the monthly payment be on a purchase of $10,000 car at a 5.9% fixed annual interest rate…

A: Formula for the ordinary annuity is  FV=R1+in-1i where R is the regular deposit, i is the periodic…

Q: Find the amount borrowed if $800 is due at the end of 7 months when an annual simple interest rate…

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Q: Suppose you see a car with a price of $12,000 that is advertised at $300 per month for 5 years. What…

A: Given: Price of the car=$12000, Payment=$300 per month, time=5 years.

Q: Calculate the time needed on an investment of $800,000 to gain an interest of $28,800 if the…

A:

Q: Suppose you have budgeted $ 1130 a month towards a mortgage. If you are offered a 30 year mortgage…

A: Given that, the monthly payment towards a mortgage is $1130, the number of years is 30 years and the…

Q: Suppose that the total interest that will be paid on a 25-year mortgage from a home loan of $130,000…

A: The loan = $ 130,000Interest is = $ 380,000Total loan and the interest= ( 130,000 + 380,000)= $…

Q: Find the interest paid on a 30-year mortgage of $350,000 at an APR of   6%.

A: Given, interest paid on a 30-year mortgage of $350,000 at an APR of   6%.

Q: The minimum monthly payment for Brian's credit card is 3.5% of his balance or $25, whichever is…

A: Brian's balance at the end of his billing cycle=$722 The minimum monthly payment for Brian's credit…

Q: minimum

A: The mortgage formula is given by: M=P.r1+rn1+rn-1, where it is given that P=$175,000, r=0.04512 and…

Q: On January 1, Alex received an inheritance of a thirty-year annuity. Starting on the day of the…

A: Given  Annuity pay on january 1 =1000$ Annuity pay on April 1 =3000$ Annuity pay on july 1 =2000$…

Q: If $800 is borrowed and the interest after 6 months is $72, what is the annual interest rate for a…

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Q: Suppose you obtain a $5000 Treasury Note with a 3% annual rate, paid quarterly, with a maturity in 2…

A: See the attachment

Q: What is the interest due if $500 is borrowed for 6 months at asimple interest rate of 6% per annum?

A: Given:     Principal (P) = $500     Interest rate (r) = 6 %     Time (t) = 6 month =612 year Simple…

Q: A loan of 750000 needs to be paid in annual installments by the end of every year. The interest rate…

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Q: What is the purchase price on a car that has a $318 monthly payment for 4 years, financed at 5% per…

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Q: Calculate the new interest rate if a bank realizes that the value of a mortgage increases from…

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Q: Suppose that Juanita borrows $500 for 6 months at the simple interest rate of 9% per annum. What is…

A: Given :- Suppose that Juanita borrows $500 for 6 months at the simple interest rate of 9% per annum.…

Q: A contractor has $650 worth of electrical material on the shelf in stock for 3 consecutive years. If…

A: Where A is the amount after time t P is the initial investment R is the rate of interest t is the…

Q: If you have a reducing balance loan at 7.5% and you repay it each month, paying $850 a month. How…

A: To calculate the interest paid by the end of the second month on a reducing balance loan, we need to…

Q: A sum of $20,000 is used to buy a deferred perpetuity-due that pays $2,100 every year for the first…

A: Solution

Q: What annual rate of simple interest is necessary to give interest of $416 on a principal of $800…

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Q: Find the present worth of a maintenance that has a cost of 40,000 in year 1 and annual increases of…

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Sequence and Series

A sequence is defined as a collection of things. Series is defined to sum the things one by one in the sequence.  It was invented by German mathematician Carl Friedrich Gauss.