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Jozy Altidore invested $7.000 at 7% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end
Jozy Altidore invested $7.000 at 7% annual interest, and left the money invested without withdrawing any of the interest for 12 years. At the end of the 12 years, Jory withdrew the accumulated amount of money Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided) (a) What amount did Jozy withdraw, assuming the investment carns simple interest? Accumulated amount $ (b) What amount did Jozy withdraw, assuming the investment earns interest compounded annually? (Round answer to 2 decimal places, es 25 25) Accumulated amount $ (For calculation purposes, use 5 decimal places as displayed in the factor table provided) (a) What is the present value of $32,500 due 12 periods from now, discounted at 10%? (Round answer to 2 decimal places, es. 25.25) Present value $ (b) What is the present value of $32,500 to be received at the end of each of 6 periods, discounted at 9%? (Round answer to 2 decimal places, c.3. 25.25) Present value $ Barney Googalowns a garage and is contemplating purchasing a tire retreading machine for $17,820. After estimating costs and revenues, Barney projects a net cash inflow from the retreading machine of $3,800 annually for 7 years. Barney hopes to earn a return of 10% on such investments. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided) What is the present value of the retreading operation? (Round answer to 2 decimal places, es. 25.25.) Present value $ Should Barney Googal purchase the retreading machine? Barney Googal purchase the retreading machine
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