Q1. If $30,000 accumulates to $42,500 when invested at a simple interest for five years, what...

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Q1. If $30,000 accumulates to $42,500 when invested at a simple interest for five years, what is the rate of interest? Q2. A man went to his bank and borrowed $24,000. He agreed to repay the sum at the end of 8 years, together with the interest at 12% per year. How much will he owe the bank at the end of 8 years? Q3. In 1990 an anonymous private collector purchased a painting by Picasso entitled Angel Fernandez de Soto for $4,450,000. The painting was done in 1900 and valued then at $1800. If the painting was owned by the same family until its sale in 1990, what is the interest rate they receive on the $1800 investment? Q4. A low-cost noncontact temperature measuring tool may be able to identify railroad car wheels that are in need of repair long before a costly structural failure occurs. If the BNF railroad saves $100,000 in year 1, $110,000 in year 2, and amounts increasing by $10,000 each year for 7 years, what is the future worth of the savings in year 7 at an interest rate of 15% per year? Q5. Solar Hydro manufactures a revolutionary aeration system that combines coarse and fine bubble aeration components. This year (year 1) the cost for check valve components is $12,000. Based on closure of a new contract with a distributor in China and volume discounts, the company expects this cost to decrease. If the cost in year 2 and each year thereafter decreases by $1500, what is the equivalent annual cost for 8-year periods at an interest rate of 12% per year? Q6. For the following cash flow diagram find equivalent present worth (P) at year zero. ¡= 10% per year 4 5 1 3 $200 $200 $200 6 7 8 Year $90 $90 $90 Q1. If $30,000 accumulates to $42,500 when invested at a simple interest for five years, what is the rate of interest? Q2. A man went to his bank and borrowed $24,000. He agreed to repay the sum at the end of 8 years, together with the interest at 12% per year. How much will he owe the bank at the end of 8 years? Q3. In 1990 an anonymous private collector purchased a painting by Picasso entitled Angel Fernandez de Soto for $4,450,000. The painting was done in 1900 and valued then at $1800. If the painting was owned by the same family until its sale in 1990, what is the interest rate they receive on the $1800 investment? Q4. A low-cost noncontact temperature measuring tool may be able to identify railroad car wheels that are in need of repair long before a costly structural failure occurs. If the BNF railroad saves $100,000 in year 1, $110,000 in year 2, and amounts increasing by $10,000 each year for 7 years, what is the future worth of the savings in year 7 at an interest rate of 15% per year? Q5. Solar Hydro manufactures a revolutionary aeration system that combines coarse and fine bubble aeration components. This year (year 1) the cost for check valve components is $12,000. Based on closure of a new contract with a distributor in China and volume discounts, the company expects this cost to decrease. If the cost in year 2 and each year thereafter decreases by $1500, what is the equivalent annual cost for 8-year periods at an interest rate of 12% per year? Q6. For the following cash flow diagram find equivalent present worth (P) at year zero. ¡= 10% per year 4 5 1 3 $200 $200 $200 6 7 8 Year $90 $90 $90

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Q1 The rate of interest is 8 Q2 He will owe the bank 38752 at the end of 8 years Q3 The interest rat... View the full answer