Determine the equivalent uniform annual worth

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Reference no: EM131986735

1. You are excited to buy your first house. Based on your credit history, the bank is willing to lend you money at 4 percent interest compounded monthly. You can afford monthly payments of $1400. How much can you afford to borrow? Assume the mortgage is for 18 years.

2. A company plans to invest $18,000 dollars are new equipment to reduce operating costs. It is estimated that the savings will be $5,000 per year for the 6 year life of the equipment. Determine the equivalent uniform annual worth (EUAW) of the equipment at 8% interest. Express your answer in $ to the nearest $10.

Reference no: EM131986735

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