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Santini Construction is evaluating a project to build a bridge over the Salmon River. The project is currently worth $13,600,000. In one year, when the
Santini Construction is evaluating a project to build a bridge over the Salmon River. The project is currently worth $13,600,000. In one year, when the construction is 33% complete, there will be a one-time payment of $3,200,000. Over the next two years, quarterly payments, at the end of every quarter, of $1,510,000 will be made. The job is scheduled to be completed within the three years. During the first year, money is worth 6.59%, compounded annually. Do not include the dollar sign, $, in your answers. Do not include the comma usually used to denote thousands. Do not include the percent sign, %, in your answers. (a.) What is the amount of the debt after the deferral period? 14431458 X (b.) What is the debt after the one-time payment? 11231458.1177929 X (c.) What is the annually compounded interest rate for the annuity period? 1 * Correct to exactly 4 decimal places. Hint: You do not have a formula for this calculation - However the BAll Plus makes it easy! (d.) What is the effective annual rate of interest? 6.7546 X Correct to exactly 4 decimal places. A deposit of $4,200 is made today for a period of five years. For how long can $500 be withdrawn from the account at the end of every three months starting three months after the end of the five year term if interest is 5.75% compounded quarterly? Do not include the dollar sign in your answers. Do not include the comma usually used to denote thousands. a.) What is the annuity worth after the deferral period? 5587.53 b.) What is the value of n? (Correct to 8 decimal places.) 1.04000000 X c.) How many payments? (Round n up to the next payment.) 13 d.) The term of the annuity will be 3 years and 3 months. These answers are both whole numbers, no decimals. Hint: As the question deals with quarters months can only be in blocks of 3.)
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