Question
please help me with the following questions: 1-Eckelberger Products Inc. makes high-speed recorders with high-speed scanning. The small company has been growing at an average
please help me with the following questions:
1-Eckelberger Products Inc. makes high-speed recorders with high-speed scanning. The small company has been growing at an average rate of 60% per year for the past 4 years. The CEO asked you to convert the past growth rate into a quarterly rate for its annual report. If the past growth rate was an effective rate, what was the effective growth rate quarterly?
2-Metalfab Pump and Filter Inc. estimates that the cost of steel bodies for pressure valves will increase by $2 every 3 months. If the cost for the first quarter is expected to be $80, what is the present worth of the costs for a 4-year time period at an interest rate of 1.78% per quarter?
3-Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $125,000 in year one and increase by 3.5% each year through year five. What is the equivalent annual worth of the maintenance costs at an interest rate of 10% per year, compounded bi-monthly (compounded once in two months)?
4-How much would your parents have to deposit each month into an account that grows at a rate of 10% per year compounded quarterly if they want to have $70,000 at the end of year 3 to cover part of your college expenses? Assume no interperiod compounding.
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