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6. You would like to save some fixed amount money annualy for your child starting from his first birthday to pay his university tuition for
6. You would like to save some fixed amount money annualy for your child starting from his first birthday to pay his university tuition for four years. He is expected to enter university when he completes 18 years of age. Assume that university tuitions are expected to be 25,000 Dollars per year at that time. How much money should you save annually starting from the end of year 1 until the end of year 18 to pay the 25,000 annual tuition starting from the end of year 18 until the end of year 21 ? 7. In order to buy a home, you have borrowed 200,000TL at time 0 from a bank at a rate of 0.8% per month for 120 months. How much would be your monthly payments fort he next 120 months? 8. You are planning to buy a piece of industrial equipment to automate your production line which is currently manual. The equipment will cost you 300,000 dollars now and reduce your labor casts by 40,000 dollars per year for he next 12 years. Assuming that the equipment can be sold for 50,000 dollars at the end of 12 years and the interest rate for financing the purchase is 10%, should you buy the equipment? 9. You are planning to introduce a nanotechnology into your production system so that the product you produce has highly accurate surface finish and brings in more value by higher sales price. If the additional net annual revenue from such a product is expected to be 80,000 per year for he next 10 years, what should be maximum amount of investment at time 0 assuming interest rates are 12% per year? 10. How much do you have to deposit to your account now at 8% interest rate so that you can receive 1000,1250,1500,1750, and 2000 at the ends of years 1 , 2,3,4 and 5 respectively? 6. You would like to save some fixed amount money annualy for your child starting from his first birthday to pay his university tuition for four years. He is expected to enter university when he completes 18 years of age. Assume that university tuitions are expected to be 25,000 Dollars per year at that time. How much money should you save annually starting from the end of year 1 until the end of year 18 to pay the 25,000 annual tuition starting from the end of year 18 until the end of year 21 ? 7. In order to buy a home, you have borrowed 200,000TL at time 0 from a bank at a rate of 0.8% per month for 120 months. How much would be your monthly payments fort he next 120 months? 8. You are planning to buy a piece of industrial equipment to automate your production line which is currently manual. The equipment will cost you 300,000 dollars now and reduce your labor casts by 40,000 dollars per year for he next 12 years. Assuming that the equipment can be sold for 50,000 dollars at the end of 12 years and the interest rate for financing the purchase is 10%, should you buy the equipment? 9. You are planning to introduce a nanotechnology into your production system so that the product you produce has highly accurate surface finish and brings in more value by higher sales price. If the additional net annual revenue from such a product is expected to be 80,000 per year for he next 10 years, what should be maximum amount of investment at time 0 assuming interest rates are 12% per year? 10. How much do you have to deposit to your account now at 8% interest rate so that you can receive 1000,1250,1500,1750, and 2000 at the ends of years 1 , 2,3,4 and 5 respectively
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