PROBLEM 4-17) The automated toll booth system from Problem 4-9 improves traffic flow and thus reduces greenhouse emissions in the city. Rather than wait three years, the city can do it now with a 2% loan. If the toll is set at $0.75 per vehicle, and the state subsidizes the project at a rate of $0.25 per vehicle, how many years will it take for the city to pay off the loan?

Problem 4-9 is written out and solved to show where Im at, and I think Im on the right track for the solution, but I want to verify that I am doing it right by seeing the proper way to do it.

PROBLEM 9 CHAPTER 4 A city engineer knows that she will need $25 million in 3 years to implement new automated toll booths on a toll road in the city. Traffic on the road is estimated to be 3 million vehicles per year. How much per vehicle should the toll be to cover the cost of the toll booth replacement project in 3 years? Interest is 8% x = toll per vehicle $25,000,000 = 3,000,000 (x %40) 2008 A = 3,000,000 vehicles/year F= $55,000,000 $25,000,000 = 3,000,000(X)(3.2464) n = 3 years x= $2.57 per vehicle PROBLEM 17 CHAPTER 4 The automated toll booth system from problem 9 improves traffic Iflow and thus reduces greenhouse emissions in the city. Rather than wait three years, the city can do it now with a 2% loan. If the toll is set at $0.75 per vehicle, and the state subsidizes. the project at a rate of $0.25 per vehide, how many years will it take for the city to pay off the loan? P- $25,000,000 F=P(1+0.02) - $25,500,000 = 0.02 x = $1.00 per vehicle A = 3,000,000 vehicles per year n = years ? 8.5 - 1.09"-1 0.68 = 1.084-1 0.08 n= 1.68 = 1.08 n - In (1.66) - In (1.08) $25,500,000 - 3,000,000(51.00) 1.0