What is the present worth of an annual maintenance cost of $10, 000 for a period

Question

What is the present worth of an annual maintenance cost of $10, 000 for a period of 15 years if the interest rate is 5%? F is closest to $105,000 150, 000 157,000 215,000 262,000 What is the uniform annual equivalent cost of $10, 000 maintenance cost paid after 12 years if the interest rate is 6%? A is closest to $593 783 833 883 1193 A company deposits $1000 every year for ten years in a bank. The company makes no deposits during the subsequent five years. If the bank pays 8% interest, the amount in the account at the end of 15 years is nearest to $10,800 15,000 16,200 21, 200 $25,000 is deposited in a savings account that pays 5% interest, compounded semiannually. Equal annual withdrawals are to be made from the account, beginning one year from now and continuing forever. The maximum amount of the equal annual withdrawal is closest to $625 1000 1200 1265 1365 What present sum would need to be put in a savings account now to provide a $1000 annual withdrawal for the next 50 years, if interest is 6%? The present sum is closest to: $1,000 10, 000 25,000 37,500 50, 000

Explanation / Answer

13. Uniform annual equivalent cost = (P) [{i(1+i)n}/ {(1+i)n-1}]

= 10,000* [{0.06(1+0.06)12}/ {(1+0.06)12-1}] = $1192.77

Option e is closest.

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