What uniform series of payments will cover the expenses

Reference no: EM131959637

Question: (a) A company wishes to maintain a memorial with perpetual care services (lasting each year forever). The service will cost 200 dollars per year. If the interest rate is 6% what payment at t = 0 (today) will fund these services forever.

(b) The cost of maintaining a factory is expected to be 100,000 in the first year and increase by 12,000 per year during a 20 year period. What uniform series of payments will cover these expenses over the 20 year period? The interest rate is 3% per year.

Reference no: EM131959637

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