It is estimated that the annual maintenance cost of a statue erected in front of a...
It is estimated that the annual maintenance cost of a statue erected in front of a public building in a state capital would be $1,000. Assuming an interest rate of 4% year compounded daily, determine the capitalized cost for maintaining the statue.
Homework Answers
First of all we need to calculate effective annual interest rate by the following formula:
r= 4.081%
Annual maintenance cost= $ 1000
Capitalised value of the property = $1000/0.04081
=$24503
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It is estimated that the annual maintenance cost of a statue
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