ZuoTi.Pro
Question

Trixie is considering buying a new car at a cost of $17,811. She is planning to...

Trixie is considering buying a new car at a cost of $17,811. She is planning to keep the car for five years and is hoping the car will sell for $4,069 at the end of year 5. She estimates that insurance, fees, maintenance, and gas will be $1,636 in year 1 and will gradually increase every year by $194. What is the equivalent uniform annual worth (EUAW) of this car at a 2% interest rate?

Enter your answer as 1234

Round your answer. Do not use a dollar sign ("$"), any commas (","), or a decimal point (".").

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

EUAW = - 17811 * (A/P, 2%,5) + 4069*(A/F, 2%,5) - 1636 - 194 * (A/G, 2%,5)

= - 17811 * 0.212158 + 4069* 0.192158 - 1636 - 194 * 1.960401

= -5013.17 ~ -5013 (Nearest Dollar)

0 0
Add a comment
Know the answer?
Add Answer to:
Trixie is considering buying a new car at a cost of $17,811. She is planning to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Ms. Child is considering the purchase of a new food packaging system. The system costs $73,623....

    Ms. Child is considering the purchase of a new food packaging system. The system costs $73,623. Ms. Child plans to borrow one-third of the purchase price from a bank at 4.5% per year compounded annually. The loan will be repaid using equal, annual payments over a 7-year period. The system is expected to last 15 years and have a salvage value of $19,603 at that time. Over the 15 year period, Ms. Child expects to pay $790 per year for...

  • Please show code if you use excel thank you. Project A has a first cost of...

    Please show code if you use excel thank you. Project A has a first cost of $3,500, annual operating and maintenance costs of $1,900, annual savings of $2,300, and a salvage value of $1,800 at the end of its 5 year useful life. Project B has a first cost of $6,000, annual operating and maintenance costs of $1,600, annual savings of $2,500, and a salvage value of $2,000 at the end of its 7 year useful life. Using a MARR...

  • Fresh Foods is considering the purchase of a new packaging system. The system costs $215,594. The...

    Fresh Foods is considering the purchase of a new packaging system. The system costs $215,594. The company plans to borrow three-quarters (3/4) of the purchase price from a bank at 8% per year compounded annually. The loan will be repaid using equal, annual payments over a 7-year period. The payments will be made at the end of each year for the life of the loan, with the first payment occurring at the end of year 1. The system is expected...

  • The city of Mersey is planning to construct a bridge across the Cavendashim river. The first...

    The city of Mersey is planning to construct a bridge across the Cavendashim river. The first cost of the bridge will be $6,774,476. Annual maintenance and repairs will be $26,435 for the first 5 years, and then will increase to $44,195 for each of the next 10 years. For the final 5 years, the annual maintenance and repairs will increase again to $53,649 per year. A major overhaul of $497,375 will be performed at the end of year 8. Using...

  • You are considering buying a new car. The sticker price is $37,750 and you have $5,000...

    You are considering buying a new car. The sticker price is $37,750 and you have $5,000 to put toward a down payment. If you can negotiate a Flat interest rate of 7.5 percent and you wish to pay for the car over a 4-year period. What is the equivalent Annual Percentage Rate on this loan?

  • Sally and Dave are considering buying an investment apartment. –The condo costs $400,000, and they’re planning...

    Sally and Dave are considering buying an investment apartment. –The condo costs $400,000, and they’re planning to buy it in cash –They can rent out the condo for $24,000 per year ($2K per month) –There are additional miscellaneous expenses of $2,400 per year (condo fees of $200 per month). –Property taxes are $1,500 annually. –Currently, Sally and Dave have a tax rate of 30%. –Assume the full cost of the condo depreciates over 30 years. –Sally and Dave assume that...

  • Tom is considering buying a $20,000 car. After five years, he will be able to sell...

    Tom is considering buying a $20,000 car. After five years, he will be able to sell the vehicle for $10,000. Gasoline costs will be $2000 per year, insurance $600 per year, and parking $400 per year. Maintenance costs for the first year will be $1000, rising by $200 per year thereafter. Assume all costs are payable at the end of the year. The alternative is for Tom to take taxis everywhere. This will cost an estimated $6000 per year. Tom...

  • You purchase a car that has an initial cost of $25,000. Property tax on the car...

    You purchase a car that has an initial cost of $25,000. Property tax on the car will be $500 when you purchase the car and will decrease by 5% per year because the county estimates that the tax value will depreciate. Fuel cost in the first year is $1,050 and is estimated to increase by $125 per year because of expected increases in fuel cost. The cost to insure this car with you as the driver is estimated to be...

  • When you purchase a car, you may consider buying a brand-new car or a used one....

    When you purchase a car, you may consider buying a brand-new car or a used one. A fundamental tradeoff in this case is whether you pay repair bills (uncertain at the time you buy the car) or make loan payments that are certain. Consider two cars, a new one that costs $15,000 and a used one with 75,000 miles for $5,500. Let us assume that your current car’ s value and your available cash amount to $5,500, so you could...

  • I NEED A CORRECT ANSWER PLS. PLS VERIFY THE ANSWER BEFORE POSTING. 0.7 pts Question 1...

    I NEED A CORRECT ANSWER PLS. PLS VERIFY THE ANSWER BEFORE POSTING. 0.7 pts Question 1 Fresh Foods is considering the purchase of a new packaging system. The system costs $83,732. The company plans to borrow three-quarters (3/4) of the purchase price from a bank at 8% per year compounded annually. The loan will be repaid using equal, annual payments over a 6-year period. The payments will be made at the end of each year for the life of the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT