Income from the mining of mineral deposits usually decreases as the resource becomes more difficult to extract.
Question:
Income from the mining of mineral deposits usually decreases as the resource becomes more difficult to extract. Determine the future worth in year 10 of a mineral lease that yielded income of $14,000 in years 1 through 4 and then amounts that decreased by 5% per year through year 10.
Use an interest rate of 18% per year. Show
(a) Hand
(b) Spreadsheet solutions.
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a P 0 14000PA 18 3 Pg PF 18 3 where P g 140001 1 0051 018 7 018 005 ...View the full answer
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