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Grand Junction expects the cost of maintaining its sewer lines to be $20K in the first year. Draw the cash flow diagram for the first 8 years.
The lease payments are $80 per month, and there is a security deposit of $500. Draw the monthly cash flow diagram.
Describe your major cash flows for the current school term as first costs, O&M expenses, salvage values, revenues, overhauls, or prepaid expenses.
Susan Cardinal deposited $500 in her savings account, and 6 years later. What compound rate of interest has Susan earned on her capital?
oe Miner has $3000 in his savings account from an inheritance 10 years ago. If savings account pays interest annually at a rate of 5%, how much was deposited?
He agrees to repay it at 7% interest in one payment 3 years later. How much does he repay? How much of this is interest and how much is principal?
If $100 is deposited in a savings account that pays 6% annual interest, what amount has accumulated by the end of the eighth year?
A 10-year loan is available from a relative at 10% simple interest. How much more interest would be paid if the interest were compounded?
Find the interest rates on government securities with different terms. What are the interest rates on a savings bond, a 90-day note, and a 1-year note?
What is the interest rate for buying versus leasing? Which is the better choice? What is the rate of return for the bulldozer using the best financing plan?
Otherwise, you must wait 35 years to get the accumulated value of the entire fund. Which alternative is more attractive? Explain your choice.
Describe the incrementally using rate of return. The number of trucks used in a season varies from 5000 to 7500. Does this matter?
For a 5% MARR, should the managerinvest in the RFID system or the bar code system? Analyze incrementally using rate of return.
The new owner assumed the balance of the loan on the lot and paid Bill $2500. What rate of return did Bill receive on his investment?
A group of businessmen formed a partnership to buy and race an Indianapolis-type. What rate of return did the businessmen obtain from their racing venture?
What is the effective interest rate and the APR? Graph the effective interest rate as the time to sell the car and pay off loan varies from 1 to 5 years.
If you deposit 10% of your annual salary at the end of each year in a savings account that earns 4%, how much will you have saved for retirement after 40 years?
What percentage must be saved so that there will be $1 million in savings for retirement after 40 years?
A young engineer's starting salary is $55,000. The engineer expects annual raises of 2%. How much will the engineer have saved for retirement after 40 years?
How much will the engineer have saved for starting a business after 15 years? We suggest that the spreadsheet include at least columns for the year.
What nominal annual rate of return would you receive if you purchased the bond now and held it to maturity 20 years from now?
A man buys a corporate bond from a bond brokerage house for $925. If the bond will be paid off at the end of 10 years, what rate of return will the man receive?
Show the equation for determining the rate of return for buying a life membership. Contributed by D. P. Loucks, Cornell University. What is the rate of return?
For your auto or home insurance, find out cost of paying annually or on shorter term. What is the rate of return for buying the insurance on an annual basis?
If paid monthly, the cost is $150 at the start of each month. What is the rate of return for buying the insurance on an annual basis?