An individual is going to deposit a sum of $71000 now and $0 five years from...

Transcribed Image Text:

An individual is going to deposit a sum of $71000 now and $0 five years from now into the same account. Determine the amount of money that will have accumulated at the end of 10 years, if the interest rate for the first five years is 4% per year and 4%per year for the next five years. Question 4 You just bought a Mercedes Sprinter van for $55000 and plan on owning for the next 10 years. You plan on driving it an average of 14000 per year. The cost per mile is expected to be $1.3 in the first year and increase by 0.025 per year thereafter. What is your average annual cost for owning the van over the 10 years at an interest rate of 0.100 per year? An individual is going to deposit a sum of $71000 now and $0 five years from now into the same account. Determine the amount of money that will have accumulated at the end of 10 years, if the interest rate for the first five years is 4% per year and 4%per year for the next five years. Question 4 You just bought a Mercedes Sprinter van for $55000 and plan on owning for the next 10 years. You plan on driving it an average of 14000 per year. The cost per mile is expected to be $1.3 in the first year and increase by 0.025 per year thereafter. What is your average annual cost for owning the van over the 10 years at an interest rate of 0.100 per year?

Answer rating: 100% (QA)

For the first five years the amount of money accumulated would be Future value 71000 x 1 0045 861437... View the full answer