If you purchase a car from a certain dealership, you expect to have four free oil changes per year during the five years you keep the ar. Each oil change would normally cost you $26.61. If you save your money in a mutual fund earning 4.55% per quarter, how much re the oil changes worth to you at the time you buy the car?" A) 538.76 493.01 (c) 940.54 264.48 E) 472.68

If you purchase a car from a certain dealership, you expect to have four free oil changes per year during the five years you keep the ar. Each oil change would normally cost you $26.61. If you save your money in a mutual fund earning 4.55% per quarter, how much re the oil changes worth to you at the time you buy the car?" A) 538.76 493.01 (c) 940.54 264.48 E) 472.68

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

What simple interest rate is equivalent to simple discount rate 15 ½ % in discounting anamount for 9 months?
At the time of retirement, a couple has $200,000.00 in an account that pays 8.4%compounded monthly. If they decide to withdraw equal monthly payments for 10 years, at the end of which time the account will have zero balance, how much shouldthey withdraw each month?
Suppose that an oil well is expected to produce 1,200,000 barrels of oil during its firstyear in production. However, its subsequent production (yield) is expected to increaseby 9% over the previous year's production. The oil well has a proven reserve of10,500,000 barrels. (a)Suppose that the price of oil is expected to be $120 per barrel for the next six years.What would be the present worth of the anticipated revenue stream at an interest rateof 10% compounded annually over the next six years?(b)Suppose that the price of oil is expected to start at $120 per barrel during the firstyear, but to increase at the rate of 3% over the previous year's price. What would bethe present worth of the anticipated revenue stream at an interest rate of 10%compounded annually over the next six years?(c)Consider part (b) again. After three years' production, you decide to sell the oil well.What would be a fair price?
1- How much can you afford to spend now on an Alarm Fire system if it will save you $21,300 per year for the next 5 years? Use an interest rate of 10% per year. 2. You need to buy a car in two years from now, the car dealer made you an offering, if you buy the car now, he would give you 40% a discount rate. You know that the car price will be SR 142,000 if you delay the purchasing decision two years. what is the present worth of the savings? if you refuse the offering. Assume the interest rate is 10% per year. 3. The amount of money that Energy Company can spend now for improving productivity instead of spending $30,000 three years from now at an interest rate of 12% per year is closest to: (a) $15,700 (b) $17,800 (c) $19,300 (d) $21,350
You have won a lottery that pays you $100,000.00 at the end of this year, $110,000.00 at the end of the second, $120,000.00 the end of the third and so on for thirty years. A friend has offered you $1,200,000.00 today in exchange for all the income you will receive from the lottery win over the next 30 years. If you can get 8% interest on your savings is this a good deal?
2. My son's YouTube channel (ILYAD) is making around $1000 per year at the moment (assume payments at the end of each year). How much will he have in his RESP account 12 years from now if he keeps collecting money from YouTube? Let's assume his revenue remains the same for the next 4 years (starting today) then the revenue increases to $1500 per year, from year 4 to 8, and then it increases to $2000 per year for the remaining years. Consider 5% annual interest rate for this problem
1 You deposit $17,000 in a retirement account on your 25th birthday, and you plan to retire on your 65th birthday. (a) If you expect to have a quarter million dollars in the retirement account when you retire, what nominal annual interest rate r, compounding annually, will make this happen? (b) If you expect to have $250,000 in the retirement account when you retire at 65, what nominal annual interest rate r, compounding quarterly, will make this happen?
Your firm is thinking about investing $250,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $39,000 in year one and then increasing by $13,000 more each year thereafter. Relevant expenses will be $15,000 in year one and will increase by $7,500 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine is estimated to be $10,000. What is the annual equivalent worth of the manufacturing cell if the MARR is 9% per year?
Gabe purchases a $600 bond that has 6 remaining semi-annual 7% coupon payments for $510. What would be his return per half year period?
How long will it take money to double if it earns 4 percent per annum compounded annually?
Suppose a certain manufacturer deposits $3, 000 at the beginning of each 3 month period for 8 years in an account paying 8% interest compounded quarterly. (Round your answers to the nearest cent.) (a) How much (in $) will be in the account at the end of the 8 year period? $ Incorrect: Your answer is incorrect. (b) What is the total amount (in $) of interest earned in this account? $ Incorrect: Your answer is incorrect
Jake Werkheiser decides to invest $5000 in an IRA at the end of each year for the next 11 years. If he makes these investments, and if the certificates pay 9%, compounded annually, how much will he have at the end of the 11 years?