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    7 Seatwork Annuity Second Set

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    Nobel Engzen Du Bermoy
    1. Compare the present value of annuities paying $1,000 quarterly for 50 years, 100 years, and a perpetuity, with interest at 8% compounded quarterly. 2. Compare the capitalized costs of an asphalt pavement lasting 5 years with repairs, versus a concrete pavement lasting indefinitely with minor repairs every 3 years, with interest at 8% annually. 3. Determine the equivalent uniform annual cost over 10 years for a machine requiring $3,000 maintenance for years 1-5, $5,000 for years 6-10, with overhauls of $8,000 in year 4 and $10,000 in year 9, at 9% interest compounded annually.

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    7 Seatwork Annuity Second Set

    Uploaded by

    Nobel Engzen Du Bermoy
    616 views1 page
    1. Compare the present value of annuities paying $1,000 quarterly for 50 years, 100 years, and a perpetuity, with interest at 8% compounded quarterly. 2. Compare the capitalized costs of an asphalt pavement lasting 5 years with repairs, versus a concrete pavement lasting indefinitely with minor repairs every 3 years, with interest at 8% annually. 3. Determine the equivalent uniform annual cost over 10 years for a machine requiring $3,000 maintenance for years 1-5, $5,000 for years 6-10, with overhauls of $8,000 in year 4 and $10,000 in year 9, at 9% interest compounded annually.

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    1. Compare the present value of annuities paying $1,000 quarterly for 50 years, 100 years, and a perpetuity, with interest at 8% compounded quarterly. 2. Compare the capitalized costs of an asphalt pavement lasting 5 years with repairs, versus a concrete pavement lasting indefinitely with minor repairs every 3 years, with interest at 8% annually. 3. Determine the equivalent uniform annual cost over 10 years for a machine requiring $3,000 maintenance for years 1-5, $5,000 for years 6-10, with overhauls of $8,000 in year 4 and $10,000 in year 9, at 9% interest compounded annually.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    616 views1 page

    7 Seatwork Annuity Second Set

    Uploaded by

    Nobel Engzen Du Bermoy
    1. Compare the present value of annuities paying $1,000 quarterly for 50 years, 100 years, and a perpetuity, with interest at 8% compounded quarterly. 2. Compare the capitalized costs of an asphalt pavement lasting 5 years with repairs, versus a concrete pavement lasting indefinitely with minor repairs every 3 years, with interest at 8% annually. 3. Determine the equivalent uniform annual cost over 10 years for a machine requiring $3,000 maintenance for years 1-5, $5,000 for years 6-10, with overhauls of $8,000 in year 4 and $10,000 in year 9, at 9% interest compounded annually.

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    © All Rights Reserved
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    SEATWORK : ANNUITY April 8, 2019

    1. If money is worth 8% compounded quarterly, compare the present value of the


    following :
    a. An annuity of P1,000 payable quarterly for 50 years
    b. An annuity of P1,000 payable quarterly for 100 years
    c. A perpetuity of P1,000 payable quarterly
    2. Compare the capitalized costs of the following road pavements :
    a. An asphalt pavement costing P100,000 which would last for 5 years with
    negligible repairs. At the end of 5 years, P5,000 would be spent to remove the
    old surface before P100,000 is spent again for a new surface.
    b. A thick concrete pavement costing P250,000 which would last indefinitely, with a
    cost of P20,000 for minor repairs at the end of every 3 years. Money is worth 8%
    compounded annually.
    3. During the first 10 years of the life of a certain machine, the following were spent for its
    maintenance :
    During the first 5 years, P3,000 was spent each year; during the second 5 years, P5,000
    each year was spent. In addition, P8,000 was spent for overhauling at the end of the
    fourth year, and P10,000 also for overhauling at the end of the ninth year.
    If money is worth 9% compounded annually, what was the equivalent uniform annual
    cost for the ten-year period?`

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