How much money should be deposited in the fund

Assignment Help Chemical Engineering

Reference no: EM131280222

Self-insurance is being considered for one portion of a chemical company. The fixed-capital investment involved is $50,000, and insurance costs for complete protection would amount to $400 per year. If self-insurance is used, a reserve fund will be set up under the company's jurisdiction, and annual insurance premiums of $300 will be deposited in this fund under an ordinary annuity plan. All money in the fund can be assumed to earn interest at a compound annual rate of 5 percent. Neglecting any charges connected with administration of the fund, how much money should be deposited in the fund at the beginning of the program in order to have enough money accumulated to replace a complete $50,000 loss after 10 years?

Reference no: EM131280222

Questions Cloud

Write a verilog user-defined primitive : A majority logic function is a Boolean function that is equal to 1 if the majority of the variables are equal to I. equal to 0 otherwise. Write a Verilog user-defined primitive for a four-bit majori-ty function.

Write a java program which reads a text file : 1. Write a Java program which reads a text file called mydata.txt containing the following numbers: 34 56 76 98 12 33 58 42 98 93 and computes the minimum, maximum sum and average of the numbers and puts the output in a file called myresults.txt.

Design ip scheme for network based on specific : Design an IP scheme for a network based on specific requirements; Assign IP addresses both manually and dynamically to network devices and hosts; Implement a single-area OSPF network;

Discuss about the health information technologies : Discuss about the Health Information Technologies(HIT).

How much money should be deposited in the fund : Neglecting any charges connected with administration of the fund, how much money should be deposited in the fund at the beginning of the program in order to have enough money accumulated to replace a complete $50,000 loss after 10 years?

Temperature and c is the celsius temperature : The formula for converting a temperature from Celsius to Fahrenheit is F = 9/5 * C + 32 where F is the Fahrenheit temperature and C is the Celsius temperature. Your program must use a loop to display the table.

List supporting references and cite sources in proper format : List supporting references and cite sources in proper format. Use appropriate writing style in essay form (organization, grammar, and spelling).

Estimate the heat input required : For feed-rates of 2500 kg/h nitrobenzene and 366 kg/h hydrogen, estimate the heat input required. The nitrobenzene vapour is not superheated

Name and brief description of the organization : Select a country, criminal organization, or hacktivist group known to have a significant cyber warfare capability. Based on your open source research, post a one paragraph summary of (a) name and brief description of the organization

User Account

All Pages