The following is the schedule for the maintenance cost of a machine: Years cost 0 $ 0
Question:
The following is the schedule for the maintenance cost of a machine:
Years cost
0 $ 0
1 100
2 300
3 500
4 700
5 900
6 1100
7 1300
The amount to be deposited in an account today to pay for all future maintenance can be expressed as follows: (Assumes an interest rate of 3% per year)?
A) 100 (P / A, 3%, 7) + 200 (P / G, 3%, 7)
B) 100 (P / F, 3%, 7) + 200 (P / A, 3%, 7)
C) 100 (F / P, 3%, 7) + 200 (P / G, 3%, 7)
D) 100 (P / G, 3%, 7) + 200
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders