Ten-year annuity with first payment

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1. A five-year annuity, first payment of $500 in 2 years, payments decreasing by $100/year.

a) 1236.11 b) 1237.14 c) 1238.42 d) 1235.69 e) 1239.84

2. A ten-year annuity with first payment of $200 in 1 year and payments increasing by $100 per year.

a) 4432.25 b) 4432.97 c) 4433.27 d) 4431.17 e) 4434.99

3. What is the capital recovery per year for a machine that has an initial cost of $175,000 and a salvage value of 25% of the initial value over a 7 year life at an interest rate of 6% per year compounded yearly?

$36,560

$26,136

$23,511

$19,453

Reference no: EM131889829

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