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Question.5. A couple plan to start saving money by depositing $500 into their savings account 1 year from now. They estimate that the deposits will
Question.5. A couple plan to start saving money by depositing $500 into their savings account 1 year from now. They estimate that the deposits will increase by $100 each year for 9 years there after. What would be the present worth of the investments if the interest rate is 5% per year? Draw cash flow diagram... Question.6. A new pick up truck has a first cost of $8000 and is expected to last 6 years with a $1300 salvage value. The operating cost of the vehicle is expected to be $1700 the first year, increasing by 11% per year thereafter. Determine the equivalent present cost of the truck if the interest rate 8% per year. Draw cash-flow diagram
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