Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve number 11, 12 , and 13 11. You will deposit $4,300 at year 4. What is the annual equivalent worth of the deposit

image text in transcribed please solve number 11, 12 , and 13

11. You will deposit $4,300 at year 4. What is the annual equivalent worth of the deposit if your MAAR is 3% ? a. -PMT(3904,4300) b, -PMT(3%,4,4300) . --PV(390,4',4300), Answer--PMT(3%,4X) d. Both a and c 12. You start depositing $1,000 annually in a bank from now until the beginning of year 7 (8 deposits). What is the future value of these equal deposits at the beginning of year 8 if the bank pays a 4% interest? a. -FV(0.04,9,1000) b. -FV(0.04,9,1000,1) c. -FV(0.04,8,1000,1) d. -FV(0.04,8,1000) 13. What is the annual equivalent worth of the following project? Also, would you recommend this project? Annual Maintenance Salvage Initial savings (year overhaul at value at Project year 5 investment 1 to 8) year 8 life MAAR $400| $700|8 year! 5% $6,400| $980|

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets Instruments And Institutions

Authors: Anthony M. Santomero, David Babbel

2nd Edition

0072358688, 9780072358681

More Books

Students also viewed these Finance questions

Question

3. How can we confi rm both ourselves and others?

Answered: 1 week ago

Question

2. In what ways can confl ict enrich relationships?

Answered: 1 week ago