An investment of $100,000 is set up in a trust, earning 8% per year. Annual disbursements of $10,000 are made at the end of the first 10 years. If after 10 years the annual disbursements are adjusted so that they may be made indefinitely, the perpetual annual disbursement beginning in year 11 would most nearly be?
A machine has an initial cost of $20,000. Maintenance costs are expected to be $1,000 per year for the first 2 years and then increase by $1,000 per year for the next 3 years. After 5 years, the machine may be sold for $5,000. If the interest rate is 4%, the EUAC for this machine is most nearly?
A machine has an initial cost of $80,000 and an expected life of 10 years. This machine is expected to provide an annual savings of $10,000 and have a salvage value of $5,000. Assuming an annual interest rate of 5%, the net present worth of this of this machine is most nearly?
You intend to purchase a piece of equipment 5 years from now that will cost $25,000. At an annual interest rate of 6%, the amount of money that you need to set aside each month is most nearly equal to?
You finance the purchase a new car at an annual interest rate of 3%. After your down payment, you will still owe $20,000 and you intend to start making payments after the first month. If you finance this purchase over 4 years, your monthly payment would most nearly be?
It is anticipated that a piece of high tech equipment will cost $100,000 two years from now. If money is worth 12%, the cost of this equipment 10 years from now is most nearly?