Solution-Find the equivalent annual costs of owning a car

Find the equivalent annual costs of owning a car

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Reference no: EM132657432

Initial down payment = $2200

Annual payments = $2800 (for EOY1 thru EOY4)

Problem 1: If a car owner earns 4.75% on her investments, determine the equivalent annual costs of owning a car with the following costs (note: EOY = end of year):

Prepaid insurance = $1400, growing 8.5% annually

Gas, oil, and minor maintenance = $1575, growing 6.5% annually

Replacement tires = $500 at EOY4 and $700 EOY8

Major maintenance = $3000 at EOY5

Salvage value = $4000 at EOY9

Reference no: EM132657432

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Find the equivalent annual costs of owning a car

Reference no: EM132657432

Reference no: EM132657432

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