What is the present worth of the road at an interest rate

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1.The cost of extending a certain road is $850,000. Resurfacing and other maintenance are expected to cost $175,000 every 3 years and lasts for 96 years. What is the present worth of the road at an interest rate of 6% per year (over that period)?

2.What is the equivalent amount in year 10 of an expenditure of $5,000 in year one, $8,000 in year two, and increasing by $1,000 per year through year 10? Assume the interest rate is 10% per year.

3.If a company wants to have $100,000 in a contingency fund 10 years from now, the amount the company must deposit each year in years 1 through 5, at an interest rate of 10% per year, is?

Reference no: EM13560218

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