Annuity Studies

Cover Annuity Studies
Annuity Studies
Samuel F Samuel Frederick Racine
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What is the residual value of a machine costing $4, 000. 00 in 5 years at 10%?
2. What is the residual value of a machine costing $3, 000. 00 in 4 years at 3. The Smith Manufacturing Company acquires an auto- mobile for $1, 500. 00. They anticipate trading it in on another machine in 2 years at a value of $486. 00. What is the rate of depreciation on decreasing balances?
4. Suppose the cost was $4, 000. 00 and the residual value $1, 687. 50.
5. Which is the better purchase, and what is the savi
...ng during each of the first 3 years, on a machine costing $2, 000. 00 with a 4 years life and a residual value of $819. 20, over a machine costing $1, 800. 00 having a 3 years life with a residual value of $1029. 22.
13 GROUP III.
1. Jno. Smith has an obligation of $19, 500. 20 due 2 years hence. What amount should he invest at intervals of six months in order to accumulate the desired amount if he is able to secure 5% interest on his investment?
2. Jones is entitled to an annuity of $50, 000 per year for two years payable in quarterly installments.


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