Determining the future maintenance costs

Assignment Help Business Economics

Reference no: EM131807621

It is estimated that the maintenance cost on a new car will be $400 the first year. Each subsequent year, this cost is expected to increase by $100. How much would you need to set aside when you bought a new car to pay all future maintenance costs if you planned to keep the vehicle for 7 years? Assume interest is 5% per annum.

Reference no: EM131807621

Questions Cloud

What interest rate per month are they charging : The first payment is due 30 days after the $10,000 is received. What interest rate per month are they charging?

What interest rate did she obtain on her investment : Then for 4 years she held the stock. At the end of the 4 years she sold all the stock for $28,000. What interest rate did she obtain on her investment.

Despite zimbabwe shattered economy : Despite Zimbabwe's shattered economy, with endemic poverty and widespread political strife and repression, thousands of people from overseas still head.

Compute the current ratio for the current year : The financial statements of Victory's Natural Foods.Compute the following ratios for the current year: a. Current ratio b. Cash ratio etc.

Determining the future maintenance costs : How much would you need to set aside when you bought a new car to pay all future maintenance costs if you planned to keep the vehicle for 7 years?

Council members of a small town : The council members of a small town have decided that the earth levee that protects the town flooding should be rebuilt and strengthened.

State amount of the accrued wages as of the last day : The amount of the accrued wages as of the last day of the month is $1,760

Describe the main issues with copyright and trademark : Describe the main issues with copyright and trademark in the article, and explain how these issues were either upheld or overturned.

Maintenance costs on the tractor for the first : How much would need to be set aside now at 8% interest to pay the maintenance costs on the tractor for the first 6 years of ownership?

User Account

All Pages