e Acrobat Reader DC (32-bit) Sign Window Help ils Handout1.pdf HW1.pdf A + 135% 7 062 4. If the interest on a certain sum for three months is $63.87 at 5% simple interest, what would it be at 6%? 5. Tuition costs are expected to increase at a rate of 8% per year. The first year's tuition is due one year from now and will be $2,000. A fund is to be set up today to cover tuition costs for 4 years in an account that will earn interest rate (i). How large must the fund be if: 1 of 3 pe here to search 73"F ULTRA FAST GAMING DISPLAY msiAcrobat Reader DC (32-bat) ign Window Help Handout1.pdf HW1.pdf [ 7 0 2 / 3 4 0 - 135% . . 7 1 2 6 5 a) i =5% b) i = 8% c) i = 10% 6. Given the cash flow profiles shown below, determine the value of X such that the two cash flow profiles are equivalent at 8% compounded annually. End of year CF(A) CF(B) $12,000 -$X N 1,000 7,000 4,000 9,000 A 6,000 10,000 7,000 10,000 Com 5,000 7,000 e here to search ULTRA FAST GAMING DISPLAY msiAdobe Acrobat Reader DC (32.bit) View Sign Window Help Tools Handout1.pdf HW1.pdf 213 1 1 0 135% . . 7 9 0 6 2 7. How long will it take $800 to yield $72 in simple interest at 4%? 8. A construction company is planning to buy a warehouse for $190,000. They intend to keep the warehouse for 6 years and expect the annual upkeep and taxes to amount to $900 per year. Without any major repairs, the warehouse should have a resale price of $160,000. What is the equivalent annual cost of owning the warehouse if the company's acceptable interest rate is 6%? 9. Maintenance records of an excavation machine indicate that the first-year maintenance cost of $800 increases by $300 per year over the 10-year replacement period of the machine. If the maintenance cost is considered to occur at the end of the year and the firm's interest rate is 12%: a) What equal annual payment could the firm make to a service organization to carry out the maintenance for 20 machines? b) How much additional could be paid for a new type of machine with the same service life that required no maintenance during its life? 2 of 3 Type here to search ULTRA FAST O HZ GAMING DISPLAY msi celseries :Jobe Acrobat Reader DC (32.bit) w Sign Window Help Tools Handout1.pdf HW1.pdf 10. Traffic flow over a new bridge is expected to be one million vehicles the first year it is in use. If the average traffic rate is expected to increase by 5% per year: a) Determine the expected number of vehicles using the bridge in the twentieth year of service. b) Assuming that a toll of $1 per vehicle is charged for use of the bridge, determine the present worth of all projected toll collections using an interest rate of 8%. Type here to search ULTRA FAST HZ GAMING DISPLAY msi series