1. The maintenance cost of newly acquired equipment is 40,000.00 per year for the first 5 years and

60,000.00 per year for the next 5 years and the cost of overhaul at the end of 5th and 8th year is 140,000.

00. Find the equivalent uniform annual cost EUAC) if money is worth 6% compounded annually.

2. The purchase of a new car requires P 100,000.00 down payment and the balance to be paid at P 300, 000.00 after 2 years and P 600,000.00 after 5 years. The rate of interest is 18% compounded monthly.

(a) find the present worth of the car. (b) find the lump sum if the car is paid after 5 years, (c) with the down payment of 100,000.00, find the monthly amortization for 5 years.