A machine depreciates at the rate of 10% of its value at the beginning of a year. The machine was purchased for $5810 and the scrap value realized when sold was $2250. Find the number of years that the machine was used.
A machinery in a factory is valued at $49074 and it is decided to reduce the estimated value at the end of each year by 15 per cent of the value at the beginning of that year. When will the value be (a) $20,000 (b) 1/10th of the original value?
Find the present value of an annuity of $1000 p.a. for 14 years following compound interest at 5% p.a.
Calculate the amount and present value of an annuity of $3000 for 15 years if the rate of interest be 4½% p.a.
A machine costs a company $65,000 and its effective life is estimated to be 25 years. A sinking fund is created for replacing the machine by a new model at the end of its life time, when its scrap realizes a sum of $2,500 only. Calculate what amount should be provided every year out of profits for the sinking fund if it accumulates at 3½ per cent per annum compound.