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Extra Credit Question. Extra credit points are not included in the immediate score provided. This is part B of a two part question. (You must have part A correct to get credit for part B.) New equipment comes with a maintenance agreement that covers breakdown costs for the first two years, then the maintenance agreement cost $2000 per year payable at the beginning of the year.  Routine maintenance is not covered on the contract and is estimated to cost $1500 every year.  The expected life of the equipment is 10 years and interest rate is 6%.  Part B:  What is the present worth of the maintenance?

An individual wishes to deposit an amount of money now so that at the end of five years $500 will have been accumulated. With interest at 4% per year, compounded semiannually, how much should be deposited now?

A cash flow begins at $500 in year one and decreases by $25 each year after the first year until year 10. This cash flow represents

An annuity amount A is paid out at the end of years 5 through 10.  Which of the following is true regarding this cash flow?

Which of the following is true when using an end-of-period assumption for cash flows?

A cash flow begins at $100 in year one then increases by 5% each year until year 10.  This type of cash flow includes a

The effective annual interest rate of 6% nominal interest rate compounded quarterly is:

I have not written my note page during the exam.  Show fronts and backs of this sheet of paper to the webcam.

$12,000 is invested with an effective interest rate is 5% per year. How much money is in the account after 10 years?

The effective annual interest rate of 6% nominal interest rate compounded monthly is: