$1.$ A company has purchased a piece of equipment today for $$5,000.$ It is expected that the

equipment will save them $$1000$ beginning in year $5$ with the savings increasing by $$200$ each

year thereafter. The equipment will require $$1000$ worth of maintenance in year $6.$ Given the

equipment has a life of $10$ years will the company recover their investment? Assume an interest

rate of $6\%.$

$2.$ The US Department of Transportation has decided to invest in electric vehicles over the next

$10$ years. They will fund $$1$ million in year $1,$ $$3$ million in year $2,$ $$5$ million in year $3,$ $$7$

million in year $4$ and $$9$ million each year thereafter. Given an interest rate of $5\%,$ what is the

present worth of the electric vehicle program?

$3.$ Determine the future worth in year $10$ of a cash flow series that starts in year $0($today$)$ at

$$25,000$ and decreases by $4\%$ per year $($through year $10).$ Use an interest rate of $4\%.4.$ A person opens a savings account today. In year $1,$ she deposited $$5000.$ She made no deposits

in year $2$ and $3$ and then deposit $$2000$ each for years $4$ through $6.$ Given an interest rate

of $4\%,$ how much would she have needed to deposit each year if she made equal payments in

years $1$ through $6$ to have the same amount in the account at the end of year $6?$

TSRP $620$: HW #$41$ of $1$