What is the effective annual interest rate for payment plan

Assignment Help Macroeconomics
Reference no: EM13180593

1. At 7.0% effective annual interest, how much should be deposited at the start of each year for 10 years (10 deposits) in order to start drawing out $200 at the end of the year for 10 additional years (10 withdrawals) starting at the end of the fourth year? Show the CFD and solve.

2. What is the effective annual interest rate for a payment plan of 30 equal payments of $73.00 per month to buy a refrigerator when a lump sum payment of $1,883.97 would have been an outright purchase? Show the CFD and solve.

3. You borrow $600 from your roommate and agree to pay interest of 2.0% per month on each remaining amount and provide the final payment by the end of month 8. You pay $70.00 per month for the first 7 months. How much will you owe for your final payment

4.A rural stretch of a two lane road in Loudoun County is to be refurbished or a new route established. The existing road, E, will cost $3,000,000 and the new route, N, will cost $5,000,000. Annual O&M costs will be $120,000 for E and $90,000 for N. Annual user costs are estimated to be $880,000 for E and $660,000 for N. The interest rate for the County's capital programming is 5% compounded annually. Use a Planning Horizon of 20 years and Salvage Values of 60% of first cost. Compute the B/C Ratio you believe to be relevant.

Reference no: EM13180593

Questions Cloud

What efficient institutions are adopted in a country : Make sure to label the axis of the graph. Now, add two more production functions based on the following scenarios. a. Efficient institutions are adopted in a country. Label this production function F2. b. A new technology is adopted allowing great..
How many different new drama line-ups are possible : A television network had 13 drama pilots to fill 5 remaining time slots in the Fall 2007 lineup; 10pm Monday, 10pm Wednesday, 10 pm Thursday, 9pm Friday, 10pm Sunday. How many different new drama line-ups are possible?
How many user names begin with a and end with 9 : Students log on to California Virtual Campus with a user name consisting of eight characters: four uppercase letters of the alphabet followed by four digits.
How many different sales portfolios are poosible : If her company manufactures 7 types of pain relievers, 3 types of antidepressants, 6 types of allergy medicine, and 2 types of cholesterol medicine, how many different sales portfolios are poosible?
What is the effective annual interest rate for payment plan : A rural stretch of a two lane road in Loudoun County is to be refurbished or a new route established. The existing road, E, will cost $3,000,000 and the new route, N, will cost $5,000,000. Annual O&M costs will be $120,000 for E and $90,000 for N...
How many grippers must roseville medical sell : How many Grippers must Roseville Medical sell in order to breakeven and how many Grippers must Roseville Medical sell in order to earn a target profit of $500,000?
Which is concerning the marginal-physical-product curve : Which of the following statements concerning the marginal-physical-product curve above is true? It can be determined from the marginal-physical-product curve shown above that A)marginal physical product reaches a minimum with the first worker.
Find an equation for the parabola : Highway engineers design a parabolic curve for an entrance ramp from a straight street to an interstate highway . The vertex of the curve passes through (0, 0) and the parabola passes through (1000, + 800). Find an equation for the parabola.
Which statement is correct : Which statement is correct?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Tax of accountant in organization decision making process

What should be the role of the tax of accountant in the organization decision making process.

  Currently one argument against the continuation of state

Currently one argument against the continuation of state regulation of insurance and one argument.

  Explain how would each economist explain unemployment

Explain how would each economist explain unemployment and what policies would each advocate.

  Interior department currently announce that it will increase

Interior Department currently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues.

  Determining total value

A philanthropist working to set up a permanent  endowment wants to deposit  money each year, starting now and making  ten more deposits,

  Illustrate what happens to an individual persons

Illustrate what happens to an individual person's demand curve for BlackBerry phones as the number of other Blackberry users declines.

  Effect of price flooring and price ceiling on demand

Using the following schedule, define the equilibrium price and quantity. Explain the situation at price of $10. What will occur? Discuss the situation at a price of $2. What will occur?

  Cost of production in increasing cost industry

Suppose you own a home remodelling company. You are currently earning short-run profits. The home remodelling industry is an increasing-cost industry. In the long run, what do you expect will happen to

  Illustrate the difference in the price elasticity of demand

Illustrate the difference in the price elasticity of demand for an individual firm in a perfectly competitive industry as compared with a monopolist.

  Praises to the marketplace system also ownership

We give praises to the marketplace system also to the institution of private ownership of resources. But here we will find cases where firms do not act in the best interest of society.

  Explain why might intangible resources such as human capital

Explain why might intangible resources such as human capital and intellectual assets be a more likely source of sustainable competitive advantage than tangible resources.

  Elasticity of demand will also rise monopoly power

A rise increase in elasticity of demand will also rise monopoly power.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd