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3) Sean wants to buy a $180,000 house. He has $20,000 in cash to use as...

3) Sean wants to buy a $180,000 house. He has $20,000 in cash to use as a down payment. The bank offers to lend Sean the remainder at a 6% annual interest rate. The term of the loan is 30 years. Compute the monthly loan payment.

7) Sammy’s Inc. is considering establishing a new machine to automate a meatpacking process. The machine will save $50,000 in labor annually. The machine can be purchased for $200,000 today and will be used for 10 years. It has a salvage value of $10,000 at the end of its useful life. The new machine will require an annual operation and maintenance cost of $9,000. The firm uses an interest rate of 10%. Do you recommend automating the process? Why? Explain thoroughly.

Please workout and explain the problem. Thanks!

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