How much should you put in a 10% (effective annual rate) saving account in order to has $10,000 in five years? If $500 were deposited in saving account how much would be in the account if the bank paid 6% interest compounded annually? If you bank to have $800 in saving account end of 4 years how much account at the end of 4 yean., and 5% interest was paid annually. should you put into the savings account now? Suppose the bank changed their interest policy for the above problem to "6% interest compounded situation a $500 deposit now would result in how much money in the account at the end of three years? A mechanical device will cost $20.000 when purchased Maintenance will cost $1000 each year. The device will generate revenues of $5000 each year for five years, after which the salvage value is expected to be $7000. Draw and simplify the cash flow diagram Maintenance costs for a machine are $250 each year What is the present worth of these maintenance costs over a 12-year period if the interest rate is 8%? A man deposits $500 in a credit union at the end of each year for five years. The credit union pays 5% interest, compounded annually. At the end of five years, immediately following his fifth deposit, how much will he have in his account? You are currently paying $250 per month to lease your office phone equipment. You have three years left on a five-year lease. What would have been an equivalent purchase price two years ago? The effective interest rate per month is 1%. An investor holds a time payment purchase contract on some machine tools. The contract calls for the payment of $140 at the end of each month for a five-year penned the first payment is due in one month He offers to sell you the contract for $6800 cash today. If you otherwise can make 1% per month on your money, would you accept or reject this offer. Maintenance on an old machine is $100 this year but is expected to increase by $25 each year thereafter What is the present worth of five years of maintenance? Use an interest rate of 10%