Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help before 9 am attached the compound interest table A municipality is investigating the maintenance and refurbishment of the main road through the town.
Please help before 9 am attached the compound interest table
A municipality is investigating the maintenance and refurbishment of the main road through the town. They can either resurface the road every 10 years, or resurface every 15 years but with higher maintenance costs. The municipality uses a 5% interest rate for their appraisals to include in their applications for the Municipal Infrastructure Grant (MIG). The funding will be available such that construction can be completed by the end of the current financial year. They have determined the following data, but they need you to carry out an economic appraisal as the basis from which to advise them: 10-year resurfacing cycle Resurfacing: R15 000 000 Maintenance schedule: Year 1-5: zero Year 6: R300 000 Year 7: R600 000 Year 8-10: R800 000 15 Year resurfacing cycle: Resurfacing: R15 000 000 Maintenance schedule: Year 1-5: zero Year 6: R300 000 Year 7: R600 000 Year 8-10: R800 000 Year 11-15: R1 000 000 608 APPENDIX C: COMPOUND INTEREST TABLES 5% Compound Interest Factors 5% Sinking Fund Factor Find A Given F A/F Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P Given A A/P F/A 1.0500 1.000 .5378 2.050 .3672 3.152 .2820 4.310 .2310 5.526 n Present Worth Factor Find P Given A P/A 0.952 1.859 2.723 3.546 4.329 n 1 2 3 4 5 1.0000 .4878 3172 .2320 .1810 1 2 3 4 5 6 7 8 9 10 6 7 8 9 10 .1470 .1228 .1047 .0907 .0795 .0704 .0628 .0565 .0510 .0463 .0423 .0387 .0355 .0327 .0302 .1970 .1728 .1547 .1407 .1295 .1204 .1128 .1065 .1010 .0963 11 12 13 14 15 11 12 13 14 15 16 17 18 19 20 2.407 .0923 .0887 .0855 .0827 .0802 16 17 18 19 20 21 22 23 24 25 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given F F/P P/F 1.050 .9524 1.102 9070 1.158 .8638 1.216 .8227 1.276 .7835 1.340 .7462 1.407 .7107 1.477 .6768 1.551 .6446 1.629 .6139 1.710 .5847 1.796 .5568 1.886 .5303 1.980 5051 2.079 4810 2.183 .4581 2.292 .4363 4155 2.527 3957 2.653 .3769 2.786 .3589 2.925 .3419 3.072 .3256 3.225 .3101 3.386 .2953 3.556 .2812 3.733 .2678 3.920 2551 4.116 .2429 4.322 .2314 4.538 .2204 4.765 .2099 5.003 .1999 5.253 .1904 5.516 .1813 7.040 .1420 8.985 .1113 11.467 .0872 14.636 .0683 18.679 .0535 23.840 .0419 30.426 .0329 38.832 .0258 49.561 .0202 63.254 .0158 80.730 .0124 103.034 .00971 131.500 .00760 .0780 .0760 .0741 .0725 .0710 .0696 .0683 .0671 .0660 21 22 23 24 25 Arithmetic Gradient Gradient Gradient Uniform Present Series Worth Find A Find P Given G Given G A/G P/G 0 0 0.488 0.907 0.967 2.635 1.439 5.103 1.902 8.237 2.358 11.968 2.805 16.232 3.244 20.970 3.676 26.127 4.099 31.652 4.514 37.499 4.922 43.624 5.321 49.988 5.713 56.553 6.097 63.288 6.474 70.159 6.842 77.140 7.203 84.204 7.557 91.327 7.903 98.488 8.242 105.667 8.573 112.846 8.897 120.008 9.214 127.140 9.524 134.227 9.827 141.258 10.122 148.222 10.411 155.110 10.694 161.912 10.969 168.622 11.238 175.233 11.501 181.739 11.757 188.135 12.006 194.416 12.250 200.580 13.377 229.545 14.364 255.314 15.223 277.914 15.966 297.510 16.606 314.343 17.154 328.691 17.621 340.841 18.018 351.072 18.353 359.646 18.635 366.800 18.871 372.749 19.069 377.677 19.234 381.749 6.802 8.142 9.549 11.027 12.578 14.207 15.917 17.713 19.599 21.579 23.657 25.840 28.132 30.539 33.066 35.719 38.505 41.430 44.502 47.727 51.113 54.669 58.402 62.323 66.439 70.761 75.299 80.063 85.067 90.320 120.799 159.699 209.347 272.711 353.582 456.795 588.525 756.649 971.222 1 245.1 1594.6 2040.7 2610.0 .0280 .0260 .0241 .0225 .0210 .0196 .0183 .0171 .0160 .0151 .0141 .0133 .0125 .0118 .0111 .00828 .00626 .00478 .00367 .00283 .00219 .00170 .00132 .00103 .00080 .00063 .00049 .00038 26 27 28 29 30 31 32 33 34 35 5.076 5.786 6.463 7.108 7.722 8.306 8.863 9.394 9.899 10.380 10.838 11.274 11.690 12.085 12.462 12.821 13.163 13.489 13.799 14.094 14.375 14.643 14.898 15.141 15.372 15.593 15.803 16.003 16.193 16.374 17.159 17.774 18.256 18.633 18.929 19.161 19.343 19.485 19.596 19.684 19.752 19.806 19.848 0651 26 27 28 29 30 31 32 33 34 35 40 45 50 55 60 .0641 .0633 .0625 .0618 .0611 .0583 .0563 .0548 .0537 .0528 .0522 .0517 .0513 .0510 40 45 50 55 60 65 70 75 80 85 65 70 75 80 85 .0508 90 95 100 .0506 .0505 .0504 90 95 100Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started