Q1: Charles must make a loan payment of $1188 at the end of each q...

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Q1:
Charles must make a loan payment of $1188 at the end of each quarter. His nominal annual loan rate is 2%, compounded quarterly. The original term of the loan was 14 years. How much did Charles originally borrow?

Q2:
The city of Winterbourne has made it a strategic goal to enhance livability in the city. The city has decided to undertake a project that will occur in two phases. During the first phase, the city will connect several of the parks with walking paths. During the second phase, the city will add water features or splash fountains to several of the parks.

The initial cost of the project will be $302018. Annual utilities for maintaining the walking paths and keeping them lit during the early evening are estimated to be $10524, with costs increasing by $220 each subsequent year. The paths will require repaving in year 9 at a cost of $52766 and again in year 18 at a cost of $68180.
The water features and splash fountains will be added to the parks at the end of year 10 at a cost of $212841. The water utilities are estimated to be $18350 per year, increasing by 13% each subsequent year. (The first payment for the water utilities will occur at the end of year 10.)
The city has secured a sponsorship from a local business to help pay for part of the project. The city will receive a grant from the business of $133563 per year, increasing by 2% each subsequent year. The city will receive the grant for 7 years. (The city will receive the first grant payment at the end of year 1.)
Using a nominal annual interest rate of 2% compounded annually and a lifespan of 26 years, what is the present worth of the entire project?

Q3:
Cupid's Confections is interested in buying a new manufacturing system to help the company keep up with demand. The company has received bids for two different systems:

                                  Mighty               Candylicious
                                 Delighty

First Cost                   $79587                  $100974
Salvage Value             $10346                  $29622
Annual Utilities            $10145                   $10779
Number of additional
employees needed          4                           7
Number of additional
pieces of candy that
can be processed
per month                      10287                      38928
Lifespan                        6 years                   9 years

The company pays its employees an average salary of $40959 per year. The company makes a profit of $0.89 per piece of candy (assume all additional candy produced would be sold).
NOTE:
• You only need to calculate the present worth of the Candylicious, not Mighty Delighty. You do need to know the lifespan of the Mighty Delighty to make an accurate calculation
• # pieces of candy is per month

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