- 1 A New High Efficiency Air Conditioning Unit Will Cost 8 700 To Install The Current Average Monthly Cooling Bill Is 1 (112.32 KiB) Viewed 35 times
1.) A new high-efficiency air conditioning unit will cost $8,700 to install. The current average monthly cooling bill is $550. Owners of the new air conditioner expect to save 25% per year on their bills. Determine the simple payback period for this installation. 2.) Compute the following values by computing factors or look them up in the textbook table. a.) PV(10,3.5%, 100) b.) FV (7,10%,200) c.) FVS(5,3.5%,150) d.) PVS (15,5%,300) e.) Sinking Fund Deposit Factor D(6,2%,500) f.) capital recovery factor P(25,6%,20,000) 3.) What is the present worth of a future cost of $8000 dollars in 20 years if the interest rate is 15% per year. 4.) An individual in planning to buy a new truck 7 years from now. The expected cost of the truck is $40,000 at the time of purchase. The person wants to make a down payment of half the truck value at the time of purchase. How much must the person save each year if they can earn 7% per year over the period on their savings? 5.) How much money would you accumulate in 12 years if you take an annual salary bonus of $3000 and a.) place it in a checking account that draws 0% interest b.) place it in a interest-bearing account that earns 2.5% annually c.) buy a stock that has an average annual return of 8% 6.) You are promised a future amount $5000 in 5 years through a bond purchase. How much should you pay for this bond if you wish to earn 7% on your money?