Question 1 [1 Mark] An Oil Company is considering the installation of flow meters in a pipe. If the company goes ahead with the project, it will spend $55,000 each year for five years, starting 3 years from now. Assuming that the the interest rate of 20% per year: (a) Find the Present worth (year 0 ) of this contract. (b) What is the equivalent uniform annual amount of the contract in years one through 7 ? Question 2 [1 Mark] A decreasing gradient begins in year 4 and extends to year 9 . This base amount in year 3 is $300, then decreases by $25 per year until it reaches $150 in year 9 . The interest rate is 15% per year. (a) Find the Present worth (year 0 ) of this gradient. (b) Find the Future worth (year 7) of this gradient