Question

1- Costs for maintenance of buildings at an industrial complex are expected to be $1,000 in year three, $1,200 in year four and amounts increasing by $200 per year thereafter through year nine. At an interest rate of 12% per year, calculate the equivalent future worth at year 9.

2- The costs of fuel for a smelting operation are expected to be $50,000 in year three, $52,500 in year four and amounts increasing by 5% per year thereafter through year ten. At an interest rate of 8% per year, calculate the present worth.

3- Payments of $1,000 in year two and $5,000 in year five are equivalent to uniform payments in years three through seven at an interest rate of 12%. Calculate those uniform payments.

4- How many uniform annual receipts would be required from now that an initial investment of $1,000,000 would be recovered? Note that the annual receipts are $131,000 and starts three years from now at an interest rate of 8% per year.

               

Answer 1