Answer: $770.22
Explanation:
If she makes equal contributions then those would be annuities. The $9,000 she wants to have will be the future value of the amount currently in her account and the annuity.
9,000 = 5,000 ( 1 + r) ^ n + ( annuity * future value interest factor of an annuity, 9%, 3 years)
9,000 = 5,000 ( 1 + 9%) ^ 3 + ( Annuity * 3.2781)
9,000 = 6,475.145 + 3.2781 * Annuity
Annuity = (9,000 - 6,475.145) / 3.2781
Annuity = $770.22
Answer:
equivalent annual cost: 19,784.81
The investment is not economically justified as it is cheaper to pay the fines than invest in the equipment to avoid them.
Explanation:
We calcualte the PMT of a 75,000 dollars equipment at 10%
PV 75,000
time 5
rate 0.1
C $ 19,784.811
EPA fines: <u> </u><u>$ 18,500.00 </u>
differential: (1, 284.81)
Answer:
Assume: only one of the ware house expansion projects can be implemented and suppose that, if test marketing of the new product is carried out, the advertising campaign also must be conducted and vice versa. Also suppose that the purchase of new equipment cannot be undertaken unless the basic research or the extensive warehouse expansion are implemented.
Formulate the corresponding model for maximizing the net present value subject to the restrictions stated above
Yi (1 if investment alternative is selected, o otherwise)
i = 1, 2, 3, 4, 5, 6
Max Z = $4,000y1 + 6,000y2 + 10,500y3 + 4,000y4 + 8,000y5 + 3,000y6
∴ NPV = 17,500
Wyatt's<u> effective interest rate</u> would be greater than his <u>nominal interest rate </u>by 0. 71 percentage points.
The <em>nominal interest rate</em> is 13. 62% or 0.1362 that would be given an <em>effective rate of interest </em>as follows:
Here, the value of the effective rate of interest<u>,</u> that is 0.1433 that would be multiplied with 100 to get the <u>percentage value</u> of 14.33%
Hence, the <u>difference between effective and nominal interest rates</u> would be:
Learn more about the effective and nominal rates of interest here: