A firm expects to install smog control equipment the exhaust of a gasoline engine. The local smog con- trol district has agreed to pay to the firm a lump sum of money to provide for the first cost of the equip- ment and maintenance during its 10-year useful life At the end of 10 years the ecquipment, which initially cost $10,000, is valueless. The firm and the smog control district have agreed that the following are reasonable estimates of the end-of-year maintenance costs: Year 1$75 Year 6 $200 225 250 275 300 100 3 125 4 150 5 175 10 Assuming interest at 6% per year, how much should the smog control district pay to the firm now to provide for the first cost of the equipment and its maintenance for 10 years?

Acustomer has come to your department with an urgent question. you promised her that you would collect information about her question and answer it by noon. it will take you at least 20 minutes to gather the information needed to provide an answer. it is now 11: 50 a.m. your supervisor just scheduled a 30-minute meeting to start at noon. this meeting is for all employees in your department. you decide to:

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

Conor is 21 years old and just started working after college. he has opened a retirement account that pays 2.5% interest compounded monthly. he plans on making monthly deposits of $200. how much will he have in the account when he reaches 591 years of age?