4.5 How much must be invested now at 8% interest to produce $5000 at the every year for 10 years?

4.8 A manufacturing firm spends $350,000 annually for a required safety inspection program. A new monitoring technology would eliminate the need for such inspection. If the interest rate is 8% per year, how much can the firm afford to spend on this new technology? The firm wants to recover its investment in 20 years.

4-9 A city engineer knows that she will need $25 million in 3 years to implement new automated toll booths on a toll road in the city. Traffic on the road is estimated to be 3 million vehicles per year. How much per vehicle should the toll be to cover the cost of the toll booth replacement project in 3 years? Interest is 8%. (Simplify your analysis by assuming that the toll receipts are received at year end as a lump sum.)

4-14 A local finance company will loan $15000 to a homeowner. It is to be repeated in 36 monthly payments of $588 each. The first payment is due 30 days after the $15,000 is received. What interest rate per month are they charging?

4-23 Jennifer Creek is saving up for a new car. She wants to finance no more than $10,000 of the $26,000 estimated price in two years. She deposits $5000 into a savings account now and will make monthly deposits for the next two years. If the savings account pays a nominal interest rate of 3% per year with monthly compounding. how much must she deposit each month?

4-24 Tori is planning to buy a car. The maximum payment she can make is $3400 per year, and she can get a car loan at her credit union for 7.3% interest. Assume her payments will be made at the end of each year 1-4. If Tori's old car can be traded in for $3325, which is down her payment what is the most expensive car she can purchase.

4- 57 A construction firm can achieve a $15000 cost savings in Year I and increasing by $2000 each year for the next five years by converting their diesel engines for biodiesel fuel.
1. At the interest rate of 15%, what is the equivalent annual worth of savings?
2. What is biodiesel fuel and why is it considered green energy?

4- 75 Fred is evaluating whether a more efficient motor with a life of 5 years should be installed on an assembly line. If the interest rate is 10%, what is the present value of the energy savings?
a. energy savings are estimated at $4000 for the first year then increasing by 7% annually.
b. What if the energy savings are increasing 12% annually?

4.5 How much must be invested now at 8% interest to produce $5000 a...