Zachary Alexander owns a limousine that will need to be replaced in four years at a cost

Question:

Zachary Alexander owns a limousine that will need to be replaced in four years at a cost of $65,000. How much must he put aside each year in a sinking fund at 8% annual interest to purchase the new limousine?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Math

ISBN: 978-0133011203

10th edition

Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble

See More Books

Question Posted: Mar 11, 2016 01:56 AM

See More Questions

On June 30, 2011, Rosetta Granite purchased a machine for $120,000. The estimated useful life of the machine is eight years and no residual value is anticipated. An important component of the machine...
On June 30, 2013, Rosetta Granite purchased a machine for $120,000. The estimated useful life of the machine is eight years and no residual value is anticipated. An important component of the machine...
On June 30, 2018, Rosetta Granite purchased a machine for $120,000. The estimated useful life of the machine is eight years and no residual value is anticipated. An important component of the machine...
Show that an emission tax and an absolute emission standard are equivalent instruments to regulate a polluting monopolist if and only if the standard is binding.
A federal agency receives a separate allotment to finance the salary costs of its program. The allotment is sufficient to cover salaries earned in the last month of the fiscal year but paid early in...
WestJet Airlines Ltd., a Canadian airline, was profitable in 2016. The following list of accounts and amounts was taken from its December 31, 2016, financial statements (in thousands): Accounts...
No
Information about Indiana Industrial's utility cost for the last six months of 2010 follows. The highlow method will be used to develop a cost formula to predict 2011 utility charges, and the number...
Gonzalez Company is considering two new projects with the following net cash flows. The companys required rate of return on investments is 10%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use...
The beam shown in Figure P567 carries a repeated, reversed load of 400 N applied at section C. Compute the resulting design factor if the beam is made from SAE 1340 OQT 1300. Data in Figure P567. 12...
Tasty Food Manufacturers, Inc., has a bond issue of $1,400,000 due in 30 years. If it wants to establish a sinking fund to meet this obligation, how much must be set aside at the end of each year if...
Randy Tolar contributes $250 each year to a Roth IRA. The IRA earns 2.45% per year. How much will he have at the end of 10 years? Use the formula or a calculator application?
In an effort to open up the far side of the Moon to exploration, studies have been conducted to determine the feasibility of operating a communication satellite around the translunar equilibrium...
4. What is the time complexity of the following procedure for in/2 to n do j 2 end for while (j
If the concentration of a constituent in the influent to the equalization basin is constant over the 24 h period, will the load of the constituent from the basin be constant? If the concentration of...
A three-phase transmission line of a 60 Hz circuit has a length of 370 km (230 miles). the conductors are of the 795,000cm (54/7) type with horizontal spacing of 25 feet between them. The load on the...
Simulate rolling a dice using Math.random() . Your roll function should allow the caller to specify any number of sides, but default to 6 if no side count is given: roll() assumes a 6 sided dice,...
Drama Read the excerpt from a play. Then, answer the question(s). (1) (2) Belle: Having trouble deciding what will make you look like both a power to be reckoned with and a fetching young lady while...
Joint and several liability has been abolished in some states out of a concern that it is unfair to hold ____________ ____________ defendants fully liable when they were only marginally responsible...
Players A, B, and C toss a fair coin in order. The first to throw a head wins. What are their respective chances of winning?
Discuss leadership across cultures LO1
1. Assuming that Neil lives another 21 years (the life expectancy of a 60-year-old male), what is the economic value (at the beginning of 2009) of the reduced pension if money can earn 6% compounded...
If money can earn 6% compounded annually, what percentage more money is required to fund an ordinary perpetuity paying $1000 at the end of every year, than to fund an ordinary annuity paying $1000...
A companys preferred shares pay a $1.25 dividend every three months in perpetuity. What is the fair market value of the shares just after payment of a dividend if the rate of return required by the...
Cost of debt with fees . Kenny Enterprises will issue a bond with a par value of $1,000, a maturity of twenty years, and a coupon rate of 9.9% with semiannual payments, and will use an investment...
Assume that an investment of $100,000 is expected to grow during the next year by 8% with SD 20%, and that the return is normally distributed. Whats the 5% VaR for the investment? A. $24,898 B....
Simpson Ltd is a small IT company, which has 2 million shares outstanding and a share price of $20 per share. The management of Simpson plans to increase debt and suggests it will generate $3 million...

Zachary Alexander owns a limousine that will need to be replaced in four years at a cost

Question:

Step by Step Answer:

Number of periods 41 4 Peri...View the full answer

Business Math

Students also viewed these Finance questions