Question

2. A company obtained a 12% yearly compounded monthly loan on Jan 1" for $200,000 to buy a compressor used in the manufacture of a seasonal product. The compressor will be used four months starting October of each year, and three months starting on June each year for the following 5 years. How much do the company needs to save every month in the operation of this compressor in order to afford it. (Savings can only happen if the compressor is use in the process of the product).

Answer 1

Andwer Saving should have present Value = $200,000.. led corrany save p per mouth form we one ... Yeal an derrecate ... value of money... to seegma -ing of yeal - (x2+(PA6) +P/AP) +18/ ABS + PLACAJ)+(PLA410)) +G/ALU +/”(2) Az 170.18.--- 80., (200000 = (XIA)+(XIA2)+(X/A3) +X/A4)+(XJAS)) calculating - 0 ои 8 (x = (8148) *£ca!- 2) -1)/(AC-1)-1]) > 0 (2.000 = (x/a)«[caļ u) -1)/(.) -1)) > 0 (20000 = (a/n) • [cate: 9.-1)-{a's)-1] . (A-1)-102] at the end 0000