Question
1. What is the equivalent annual cost in years 1 through 9.00 of a contract that has a first cost of$64,000 in year 0 and
1. What is the equivalent annual cost in years 1 through 9.00 of a contract that has a first cost of$64,000 in year 0 and annual costs of $19,000 in years 3 through 9.00? Use an interest rate of8.00% per year.(Round the final answer to three decimal places.)
The equivalent annual cost is determined to be $.
2. Lifetime savings accounts, known as LSAs, allow people to invest after-tax moneywithout being taxed on any of the gains. If an engineer invests $10,000 now and $10,000each year for the next 16.00 years, how much will be in the account immediately after the lastdeposit, provided the account grows by 9.00% per year?(Round the final answer to three decimal places.)
After the last deposit, the balance in the accountwill be $.
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