1. A five-year annuity, first payment of $500 in 2 years, payments decreasing by $100/year.
a) 1236.11 b) 1237.14 c) 1238.42 d) 1235.69 e) 1239.84
2. A ten-year annuity with first payment of $200 in 1 year and payments increasing by $100 per year.
a) 4432.25 b) 4432.97 c) 4433.27 d) 4431.17 e) 4434.99
3. What is the capital recovery per year for a machine that has an initial cost of $175,000 and a salvage value of 25% of the initial value over a 7 year life at an interest rate of 6% per year compounded yearly?
$36,560
$26,136
$23,511
$19,453