90.2K

Verified Solution

Link Copied!

Resubmitting this because I still haven't gotten a response from my other submissions.

QUESTION 18 Investment in a crane is expected to produce profit from its rental of $20,000 during the first year of service. The profit is expected to decrease by $3000 each year thereafter. At 12% interest and six years service life, Which equation should be used to find the present worth of the profits? O a. 20,000(P/A, 12%, 6)- 3000(P/G, 12%, 6) O b. 17,000(P/A, 12%, 6) O c. 20,000(P/A, 12%, 6) - 3000(P/G, 12%, 5) O d. 20,000(P/A, 12%, 6) + 3000 (P/G, 12%, 5) QUESTION 19 While in college, Ivette received $30,000 in student loans at 8% interest. She will graduate in June and will repay the loans in 5 equal annual payments. Which equation should she use to compute her yearly payment the repayment plan? O a. 30000(F/A,0.08,5) O b. 30000(A/p,0.08,5) O c. 30000(P/A,0.08,5) O d. 30000(A/F,0.08,5) QUESTION 20 If you have a loan of $3000 at interest rate of 6% per year nominal compounded monthly (monthly interest rate is 0.5%). you will repay an equal amount each month for 6 months (pay back the loan at the end of 6 months). What is the interest payment for your first payment? O a. $12 O b. $15 O c. $12.53 O d. $10.02 QUESTION 21 Heating equipment was purchased in 2017 for $7000 and was depreciated by the double declining balance (DDB) method for an expected life of 12 years. What is the book value of the equipment after one year's depreciation? The original salvage value was estimated to be $2500 at the end of 12 years. O a. $1416.67 O b. $1166.67 O c. $5833.33 O d. $6625

Answer & Explanation Solved by verified expert

See Answer